Toward integrated development: Extraregional countries participate in CAF share capital
As a result, the institution is achieving one of the objectives of its mission which is to support sustainable growth and regional integration efforts. To do this, it generates and channels foreign investments into Latin America and promotes the region on international financial markets where it enjoys a prestigious position.
During 1993, the Corporation had the capacity to successfully compete on these markets, placing three public bond issues on the euromarket and in Japan – on very advantageous conditions – for approximately US$300 million. In this respect, the assignment of three investment-grade ratings by the most important risk rating firms of Europe and the United States (IBCA, Moody's and Standard & Poor's) was decisive for facilitating placement of the bonds and promoting CAF on international markets.
International interest
In recent years these nations have expressed interest in establishing relations on a different basis from the traditional ones, because they are clearly aware that underdevelopment not only affects the country which suffers from it directly but also the balance of international relations. For this reason, they are granting financial assistance for a range of projects which contribute to regional development.
In this respect, CAF offers its support by managing and supervising loans and grants which governments and organizations in these countries allocate to less favored areas and populations, such as campesino farmers and indigenous communities.
In addition, the business sector of the developed world sees many attractive investment possibilities in the region, given the rapid expansion and opening of markets and economies. There is confidence and general recognition that the integration process is moving in the right direction, particularly in relation to trade and investment.
At the same time, the private sectors of the region want to become competitive partners and take maximum advantage of the new circumstances; so they are diversifying their productive and commercial structure, and introducing higher quality into their products.
CAF is deeply committed to development of the private sector and has become its largest provider of medium- and long-term financial services, targeting the majority of its operations to this sector.
Integrated Development
In this context, it is very important to develop closer institutional ties to improve identification of business and investment opportunities.
Aware of this, CAF has signed cooperation agreements with the Caribbean Development Bank (CDB), Central American Bank for Economic Integration (BCIE), Financial Fund for Development of the River Plate (FONPLATA), Latin American Economic System (SELA), and the Latin American Integration Association (ALADI).
To develop closer relations with other nations, CAF provides a class of shares known as series "C". These are reserved for extra-subregional countries which wish to strengthen their links with the Andean area by stimulating trade relations, promoting foreign investments, technology transfer, business operations, setting up joint ventures, and joint participation on the international market by the business sectors of the partner countries.
Mexico, Chile and Trinidad & Tobago have signed this type of share subscription agreement, and Jamaica and Brazil are expected to do so in the near future.
With the Caribbean area, CAF has established productive institutional and commercial contacts, which have led to joint operations between Andean-Caribbean private businesses.
The Corporation has also made a series of lines of credit available to financial institutions in Mexico, Chile, Trinidad and Tobago, St Lucia, Antigua and Barbuda, St Vincent and the Grenadines, Jamaica and Barbados to finance foreign trade operations between these countries and the Andean nations.
Characteristics of these shares
In the case of Mexico, the institution authorized to subscribe was Nacional Financiera, and in Chile Corporación de Fomento de la Producción (CORFO). When the membership of Trinidad and Tobago is formalized, the counterpart will be the Ministry of Finance of that country.
CAF is authorized to engage in operations with the government or government dependencies of countries which have subscribed to series "C" shares, for financing of projects whose objective is integration with one or more countries of the Andean Group, or technical cooperation operations to finance preparation of integration projects.
The Corporation can also offer financial assistance to public or private companies in member countries, associated with Andean companies, and grant lines of credit to banks in these countries.
CAF's more recent content
![CAF, JICA and Sicredi join forces to support women and rural producer CAF, JICA and Sicredi join forces to support women and rural producer](/media/4669796/foto_sicredi_divulgação_310724.jpg)
CAF, JICA and Sicredi join forces to support women and rural producer
The amount represents the largest international facility ever undertaken by Sicredi, with the involvement of four internationally renowned entities: Banco Finantia, BNP Paribas, Eco.business Fund, and Sumitomo Mitsui Banking Corporation (SMBC). The funds raised can also be used in regions with a Human Development Index below the national average.![CAF-FAO: Digitization project for agribusiness with repository launch CAF-FAO: Digitization project for agribusiness with repository launch](/media/4669830/caf-fao.png)
CAF-FAO: Digitization project for agribusiness with repository launch
The Food and Agriculture Organization of the United Nations (FAO), CAF -development bank of Latin America and the Caribbean-, the Ministry of Agriculture, Land and Fisheries and the Tobago House of Assembly celebrated the successful completion of the “Digitization and Innovation for the Competitiveness and Sustainability of the Agribusiness Sector in Trinidad and Tobago” project. The closing ceremony, that took place on the 29th of July, marked a significant milestone in the country's efforts to modernize and enhance the agricultural sector.![CAF recognizes Panama's water potential in the face of climate change CAF recognizes Panama's water potential in the face of climate change](/media/4669780/2_cuencas_hidro_caf_.jpg)