CAF and BBVA Sign Agreement to Mobilize Funds to Latin America and the Caribbean
November 30, 2021
For decades, both institutions have joined efforts for the sustainable development of the region. On this occasion, they reaffirm their commitment to this agreement, which aims to boost joint cooperation in favor of Latin America’s post-pandemic recovery.
CAF—development bank of Latin America— and Banco Bilbao Vizcaya Argentaria S.A. (BBVA) signed a Memorandum of Understanding to encourage the implementation of innovative financial mechanisms and the mobilization of more funds to accelerate the economic recovery during after the pandemic.
The agreement was signed by BBVA CEO Carlos Torres Vila and CAF executive president Sergio Díaz-Granados, and aims to encourage, develop and facilitate joint activities on fronts such as the co-financing of projects, the issuance of green and social bonds, the expansion of programs in local currency, the innovation of financial products and services with high social impact, support for SMEs and microfinance institutions and the generation of knowledge.
“This agreement reflects CAF’s interest in fostering strategic alliances that advance technological and financial innovation in favor of the Latin American and the Caribbean population, while helping us play a major catalytic role by providing funds, products and experiences from other regions to mitigate the effects of the pandemic and advance economic recovery of the countries of the region. Our alliance with BBVA also involves the mobilization of fresh funds for green financing, which is essential for the countries of the region to migrate towards low-emission productive schemes and economies,” said CAF executive president Sergio Díaz-Granados.
BBVA CEO Carlos Torres Vila said: “The agreement with CAF is a reflection of BBVA’s commitment to the region in boosting recovery after COVID, with a focus on digitalization, financial inclusion and sustainability.”
In recent years, both institutions have mobilized funds to the region through the structuring of bonds, credit lines in international currency and local currency, loans and investments and derivatives operations, among others.