CAF approves USD 2.478 billion for sustainable development in Latin America and the Caribbean

CAF, development bank of Latin America and the Caribbean, approved USD 2.478 billion to finance strategic projects in Argentina, Brazil, Chile, Ecuador, Honduras, Panama, Dominican Republic, Trinidad and Tobago and Uruguay. This figure reflects the institution's growing capacity to mobilize financial resources in key areas of Latin American and Caribbean development, such as energy transition, poverty and inequality reduction, digital transformation and climate resilience.

The operations approved by CAF's Board of Directors will go to projects ranging from modernizing urban and rural infrastructure to promoting climate resilience, boosting agricultural competitiveness, improving urban mobility, increasing competitiveness, modernizing water and sanitation services and social equity.

"These funds for the development of Latin America and the Caribbean will directly benefit millions of citizens, fostering more dynamic and resilient economies, improving basic services and infrastructure, and promoting environmental sustainability in every corner of the region. At CAF, we are working to solve the main challenges facing Latin America and the Caribbean, such as the impacts of climate change, the need to create modern and sustainable infrastructure, energy transition and social inclusion," said Sergio Díaz-Granados, CAF's executive president.

In addition, 35% of CAF's financing in 2024 went to initiatives that promote the protection of biodiversity, the preservation of strategic ecosystems, and climate change adaptation and mitigation. This achievement is part of the institution's commitment to become the region's green bank and to dedicate 40% of its financing to environmental and sustainability initiatives by 2026.

During the board meeting, CAF also approved a Financing Facility for Investment Projects in the Caribbean for economic and social infrastructure initiatives, as well as in areas related to climate change. This new instrument, endowed with up to USD 50 million, seeks to address the particularities of CARICOM member countries and is designed to offer an innovative, agile and flexible approach, adapting to the specific needs of the region.

Antigua and Barbuda took a new step towards its incorporation as a CAF shareholder with the approval by the Board of Directors of the increase of shares to be subscribed by the Caribbean country.

These are the operations approved by CAF:

• Argentina (Río Negro): Modernization of essential services and road infrastructure: CAF approved USD 140 million for the Territorial Development Program of the Province of Río Negro. This financing will modernize water and sanitation systems, strengthen government management and improve road connectivity, benefiting more than 730,000 inhabitants of the Patagonian region.
• Brazil (Porto Alegre): Climate resilience in the face of natural disasters: To address the impacts of the severe flooding suffered in Porto Alegre, capital of Rio Grande do Sul, in April and May of this year, CAF will carry out a project that seeks to strengthen the city's climate resilience and directly benefit more than 100,000 people, contributing to sustainable urban development in vulnerable areas.
• Chile: Expansion and modernization of the Santiago Metro: With a loan of US$300 million, CAF will support the ambitious expansion plan of the Santiago Metro, increasing the network by 50%. This project will benefit more than 4 million daily passengers, with expanded coverage that will reach 80% of the metropolitan area.
• Ecuador: Sustainable financing for SMEs led by women: CAF approved a $100 million A/B Loan in favor of Banco Internacional to support approximately 360 operations for small and medium-size enterprises (SMEs) led by women and 194 sustainable business projects. This financing includes initiatives related to energy efficiency and green business, in line with CAF's sustainability strategy.
• FONPLATA: Expanded financing for regional infrastructure: CAF increased the uncommitted revolving credit line for FONPLATA, strengthening its capacity to execute strategic projects in physical infrastructure, socio-environmental development, and productive economic development in five countries in the region.
• Honduras: CAF loan for strategic road infrastructure: This US$160 million loan will be used to expand and rehabilitate the Corredor de Occidente CA-4, Chamalecón - Naco section. This project will upgrade 24 kilometers of road from 2 to 4 lanes using hydraulic concrete, improving connectivity, safety, and logistical integration in Central America.
• Panama: More than one million beneficiaries with an improved sanitation system: CAF approved a US$491 million loan to finance Panama's Sanitation System Improvement and Expansion Program. This project includes the construction, expansion, and modernization of critical sanitation infrastructure, as well as preinvestment studies and supervision. These actions will significantly improve the quality of life, public health and environmental sustainability for more than one million Panamanians.
• Dominican Republic: Agricultural Optimization for Greater Productivity: CAF approved a US$250 million loan to improve irrigation systems on agricultural land, which will expand the irrigated area by 10,960 hectares. The purpose of these hydraulic works is to guarantee a constant and equitable water supply for crops, increase the number of harvests, and minimize environmental impact. This project will benefit more than 52,274 inhabitants and more than 2,274 farmers, promoting agricultural competitiveness in the country.
• Trinidad and Tobago: Climate Change Resilient Infrastructure: With financing of USD 250 million, CAF will support two strategic programs in Trinidad and Tobago: the modernization of resilient road infrastructure and the improvement of educational infrastructure. These projects are aimed at increasing the country's capacity to cope with the effects of climate change, while strengthening education and human development, including expanding access to Spanish language learning.
• Uruguay: Strengthening the pension system: With a line of credit of US$300 million, CAF will support the Caja de Jubilaciones y Pensiones Bancarias (CJPB) as part of the reform of Uruguay's pension system. This financing will guarantee the payment of benefits to more than 38,000 beneficiaries, mostly women, contributing to the institution's financial sustainability and social welfare.