JBIC extends fourth line of credit to CAF for green operations in Latin America and the Caribbean

The Japan Bank for International Cooperation (JBIC) announced today a loan agreement with CAF - Development Bank of Latin America and the Caribbean, aimed at boosting environmental initiatives in the region. Under the agreement, JBIC will provide a line of credit totaling up to US$100 million, with JBIC's share amounting to US$50 million. The credit line, co-financed with Sumitomo Mitsui Banking Corporation (lead arranger) and Joyo Bank, Ltd., underscores JBIC's commitment to promoting sustainable development and combating climate change.

This fourth line of credit follows previous successful collaborations between JBIC and CAF in 2011, 2016 and 2020, demonstrating a long-standing partnership focused on fostering economic integration and development within the Latin America and Caribbean region. Through this initiative, JBIC seeks to support CAF's efforts to achieve economic prosperity while addressing pressing environmental challenges. With this fourth line of credit, CAF and JBIC would be mobilizing US$700 million to the region to support sectors such as renewable energy and energy efficiency, sustainable transportation, and water and sanitation.

For CAF Executive President Sergio Diaz-Granados, the operation elevates the relationship between the two institutions to a higher level, as the focus on environment-related initiatives promotes the region's social and economic development in an inclusive and long-term manner. "It is a further step towards promoting Latin America and the Caribbean as a region of solutions to the challenges facing the world in the 21st century, and our partnership with JBIC has been adding, at each new stage, effective and direct joint action in this regard," he said.

JBIC emphasizes the institution's dedication to supporting global environmental preservation efforts. JBIC is proud to continue its collaboration with CAF in financing projects that contribute to the decarbonization of the Latin American and Caribbean region. This partnership underscores our commitment to sustainable development.

Furthermore, this initiative is in line with JBIC's Fourth Medium-Term Business Plan and its ESG (Environmental, Social and Governance) Policy. JBIC remains steadfast in its pursuit of a decarbonized society, with ambitious targets to reduce operational greenhouse gas emissions to net zero by 2030 and achieve net zero emissions across its financial portfolio by 2050.

The relationship between JBIC and CAF began in 1975 and since then cooperation has been deepening and focusing on supporting the social and sustainable development of Latin American countries. In recent years, the relationship has been strengthened by attracting other Japanese and international commercial banks to participate in these structures.

CAF plays a key role in promoting economic development and trade finance in the region. The line of credit provided by JBIC will facilitate the financing of essential environment-related projects, aligning with CAF's commitment to allocate USD 25 billion to green finance between 2022 and 2026.