CAF approves USD 1.14 billion for sustainable development and expands its presence in the Caribbean

CAF - the development bank of Latin America and the Caribbean - approved a total of USD 1.14 billion to promote sustainable development and inclusive growth in the region. The loans will contribute to improving water security in Bolivia, ensuring food assistance in Argentina, linking financial conditions to the fulfillment of commitments to climate action and gender equality in Mexico, and strengthening adaptation and climate resilience in the Dominican Republic.

Additionally, the CAF Board approved the provision of Series "C" shares for The Bahamas, Dominica, Grenada, who have formally expressed their interest in joining the bank, along with five other Caribbean countries. With this new positioning, CAF is on its way to becoming the development bank with the widest presence in the region, which will translate into greater support for green and sustainable development projects.

"Our positioning in the Caribbean will give a new dimension to an institution created by six Andean countries (Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela) that, fifty-six years later, has 21 shareholder countries and is one of the main sources of multilateral financing in the region. This expansion of CAF in the Caribbean will lead us to be the development bank with the broadest coverage in Latin America and the Caribbean," said Sergio Díaz-Granados, Executive President of CAF.

The CAF Board meetings and the General Shareholders' Assembly were held for the first time in the Dominican Republic, the country that assumes the presidency of the Board for one year. This also marks the first time a Caribbean country will perform this role.

During the CAF meetings, the bank's historic results were presented. In 2023, CAF reached a historic high in approvals amounting to USD 16.261 billion; total assets of USD 53.814 billion; a net income of USD 810 million; and equity of USD 14.730 million, a 7.4% increase over 2022. Additionally, last year Chile, the Dominican Republic, and Honduras became full members of the institution.

This expansion and financial strength were recognized by credit rating agencies with the highest rating issued to CAF, as well as by investors who oversubscribed to a record of 45 bond issues in various international markets totaling approximately USD 6.500 billion. Over its thirty years of existence, the CAF bond issuance program, which began in 1993, has succeeded in attracting resources from international capital markets to key development areas in the region.

Furthermore, in 2023, USD 4.298 billion of third-party resources were mobilized, representing a 190% increase compared to 2022; positively impacting the lives of millions of Latin Americans and Caribbeans.

The CAF Board also approved funds for the special funds of 2024, totaling USD 138 million, which will boost human, productive, and social development projects in the countries of the region, and four new facilities: one for implementing projects with subnational governments; another to strengthen operations with the private sector; another to finance inclusive social welfare initiatives; and another to support the region's positioning in regional and international forums.

These are the loans approved by the CAF Board in Punta Cana:

USD 240 million to improve water security in Bolivia. This loan will help ensure the availability of water for social development and agricultural production and is expected to contribute to increasing the area under irrigation by about 13,600 hectares, as well as improving productivity and efficient water use, benefiting 15,000 families across the country.

USD 400 million for a food assistance program in Argentina. The funds will be allocated to support the execution of the food assistance program Prestación Alimentar, which contributes to the food security of families in situations of social vulnerability, approximately 4 million people, including mothers or fathers with children up to 14 years old, pregnant women, people with disabilities, and mothers with 7 or more children who receive a non-contributory pension.

USD 300 million for Mexico. Mexico becomes the first CAF shareholder country to receive the new form of Loan Integral Linked to Climate and Social Objectives (PIVOCS), which allows linking financial conditions to the fulfillment of commitments in climate action and gender equality.

USD 200 million to the Dominican Republic to strengthen adaptation and climate resilience. This is the first loan approved by CAF for the Dominican Republic after having increased its shareholding and becoming a full member. This operation will promote activities for the mainstreaming of climate action in public sector management; promote resilient land use and a just transition of the economy towards low-carbon development; among others.