IFC and Córdoba Province Partner on Landmark Sustainability-Linked Loan for Río Cuarto Ring Road Project

Washington D. C., March 13, 2026 — The International Finance Corporation (IFC), a member of the World Bank Group (WBG), and the Province of Córdoba announced a landmark financing agreement to support critical infrastructure development. The investment will finance the expansion of National Route (RN) 8 and RN A005 into dual carriageways and complete a 21.5 km section of the bypass around Río Cuarto. These works are expected to create direct and indirect jobs during construction while improving long-term conditions for private sector job creation. This operation represents IFC’s first sustainability-linked loan with a subnational government in Latin America and the Caribbean. The project includes the construction of road duplications, interchanges, crossings, a 320-meter bridge over Río Cuarto River, reconfigured roundabouts, and paved service roads, among other improvements.

The project aims to enhance road connectivity and safety, reduce travel times, lower greenhouse gas (GHG) emissions, and improve road services, that will strengthen regional connectivity, stimulate economic activity, and generate employment opportunities. It will also integrate these upgraded roads into Argentina’s federal concession network. A portion of the project will focus on installing energy-efficient LED lighting to reduce public energy consumption. In addition, the project framework incorporates a strong and innovative gender KPI, supporting the expansion of the Province’s Punto Mujer network across municipalities to improve access to services for women and families

“This project marks a historic milestone, not only for Córdoba but for Latin America as a whole,” said Alfonso García More, IFC’s vice president for Europe, Latin America and the Caribbean. “By adopting an innovative sustainability-linked loan, Córdoba is setting a precedent for how subnational governments can access financing that rewards strong environmental, social, and governance performance. At IFC, we are proud to continue our partnership with the Province, supporting its vision to build safer, more sustainable and more inclusive infrastructure that creates generate jobs and fosters economic opportunities.”

“The Río Cuarto Ring Road currently generates more than a thousand jobs, both direct and indirect. It is a key project to improve logistics in the southern part of the province, enhance road safety, and boost the productive development of the entire region. This financing demonstrates that Córdoba inspires confidence and can access international investment to continue growing,” said Martín Llaryora, Governor of the Province of Córdoba.

The transaction reflects IFC’s continued commitment to supporting Argentina’s development by strengthening Río Cuarto’s connectivity with the country’s main economic hubs, bolstering long-term growth, improving logistics efficiency, and enhancing regional productivity.

Note to editors:
IFC will provide a sustainability-linked loan (SLL) of up to US$250 million to finance the first phase of the Río Cuarto ring road project. The financing package includes a US$50 million commitment from IFC and an additional US$200 million mobilized from private banks and funds, including Banco Santander, Deutsche Bank, Bank of China, and ILX Fund.

In addition to financing, IFC provided a comprehensive advisory support package under its LAC Cities Platform. This included assistance in structuring a Sustainability-Linked Financing Framework (SLFF) aligned with international market standards, conducting a road safety audit of the 40-km ring road to strengthen accident prevention, and delivering capacity-building initiatives to enhance the provincial government’s technical expertise and ability to manage environmental and social risks. Together, these efforts will improve project quality and help Córdoba attract future sustainability-focused investors.