CAF’s Board of Directors Approves Assets Expansion by USD 7 Billion

The Board of Directors of CAF—development bank of Latin America—made a consensus-based decision on the institution’s tenth capital expansion, with a largest-ever increase of USD 7billion. This constitutes a vote of confidence by the institution’s shareholder countries regarding the value proposition presented by the administration to help the multilateral organization become an economic reactivation bank and the Green Bank of Latin America and the Caribbean over the next decade.

CAF has expanded its portfolio by nearly 50 times over the last 30 years and has become an important ally and strategic partner in the development of Latin America and the Caribbean. With this new capital raise the institution will effectively double its portfolio by 2030.

“This capital expansion is a great achievement of the consensus among Latin Americans and Caribbeans. We are united in promoting an institution that is firmly committed to the economic revival of our countries and to their people’s wellbeing. This is the largest capital expansion in the history of our bank and the fact that it has come about in these complex times due to the global pandemic is a great example of our countries’ commitment to one of their key development assets. I appreciate the board’s support and reiterate CAF’s decision to be an agile bank focused on Latin Americans and Caribbeans,” said Sergio Díaz-Granados, executive president of the institution.

The agenda proposed by CAF to support the recovery and development of its shareholder countries, reinforced by this capital expansion, will focus on the following spheres of action: the financing of public and private investment programs and projects; mobilizing third-party funds and redirecting their financing to the private sector; countercyclical budgetary support; knowledge management and technical assistance; the adoption of a digital transformation agenda and strengthening the gender, diversity and inclusion approach.

Similarly, in an effort to become the Green Bank of Latin America, CAF will allocate USD 25 billion over the next five years for operations that will help countries of the region improve climate resilience, promote energy transition, achieve low-emission growth and strengthen the conservation of natural ecosystems and biodiversity. Thus, the institution’s green financing is set to increase from 24% in 2020 to 40% in 2026, with all its operations aligned with the goals of the Paris Agreement.