ICO to Lend USD 300 Million to CAF for Internationalization of Spanish Companies
This is the first loan signed under the new ICO financing product to Spanish SMEs with international banking mediation. CAF will channel ICO funding through local financial institutions collaborating with this multilateral bank
The president of the Official Credit Institute (ICO), Emma Navarro, and the European director for CAF—development bank of Latin America—, Guillermo Fernández de Soto, have signed today a USD 300-million loan for CAF to finance investment projects and liquidity needs, as well as medium- and long-term exports of Spanish companies to Latin American countries.
This is the first loan granted under the new ICO funding program to international banking. Through this operation, the ICO grants CAF funds for Spanish-capital companies in Latin America. CAF will channel these funds through financial institutions from different Latin American countries collaborating with this multilateral institution.
Loans formalized with Spanish companies for investment or liquidity shall be for a maximum amount of EUR 12.5 million, while those for export may total EUR 25 million or an equivalent amount in the corresponding currency. The repayment and grace periods will be agreed between the local financial institutions that partner with CAF and the Spanish beneficiary companies.
CAF has provided a space for interested parties to submit their inquiries about requirements, deadlines, amounts and other details for accessing the funds.
The president of ICO, Emma Navarro, stated during the signing ceremony that “this new financing scheme will allow ICO to continue supporting the expansion of Spanish companies, one of our strategic axes, in line with the structural change that internationalization has implied for our economy.”
Also, CAF Director for Europe Guillermo Fernández de Soto noted that “Spain is a key country for the region, due in part to the strength of its companies and their experience in sectors of maximum interest for economic and sustainable development in countries within the CAF scope. At the same time, Latin America is a key region for Spanish businesses, where they generate a significant portion of their profits. Thus, ICO activates a USD 300-million credit line for CAF, through banks in the region, to finance Spanish companies with at least 30% in Spanish capital and that want to undertake investment projects in Latin America and the Caribbean. The presence of Spanish companies in Latin America promotes competitiveness and productivity due to improved quality standards, as well as the exchange of knowledge and experiences by having relevant companies on a global scale operating locally.”
Due to the efforts made in recent years, ICO’s international credit activity has increased significantly, from 2% in 2012 to more than 35% in 2015.
ICO-CAF Collaboration
CAF and ICO have collaborated since 1998, through different agreements aimed at enhancing business relations between Spain and Latin America to promote the internationalization of Spanish companies.
Interested parties may direct their inquiries to CAF through the call published at caf.com
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