CAF Asset Management promotes private investment in infrastructure at the 2024 Latin American Infrastructure Forum

CAF Asset Management participated in the 2024 Latin American Infrastructure Forum in Paraguay, showcasing its expertise in financing infrastructure projects with approximately USD 1.8 billion under management in Colombia and Uruguay, as well as its commitment to sustainability and regional integration.

November 12, 2024

CAF Asset Management (CAF-AM) actively participated in the 2024 Latin American Infrastructure Forum, held on November 12 in Asunción, Paraguay. This event, organized by the Paraguayan Road Chamber (CAVIALPA) with the support of CAF and the Inter-American Development Bank (IDB), brought together regional leaders to address critical infrastructure topics such as investment, regional integration, and resilience.

The opening ceremony featured the President of Paraguay, Santiago Peña Palacios, along with key authorities such as the Minister of Economy, Carlos Fernández Valdovinos, and the Minister of Public Works, Claudia Centurión.

During the panel discussion, 'The Impact of the Private Sector on Infrastructure: Institutional Frameworks and Governance', Alberto Ñecco, General Manager of CAF-AM, shared insights into CAF-AM's experience since its creation in 2014 in structuring private equity funds for infrastructure financing. With approximately USD 1.8 billion under management, CAF-AM has mobilized funds towards projects in Colombia and Uruguay, channeling private savings into priority infrastructure projects.

Regarding operations in Colombia, Ñecco highlighted the Ashmore CAF Fund, the first debt fund exclusively dedicated to infrastructure in Latin America, launched in 2015 in partnership with Ashmore, a specialist in emerging markets. This fund, financed by Colombian pension funds and insurance companies, has already committed its capital to seven road projects, and CAF-AM is advancing the closure of a second debt fund focused on infrastructure projects involving private sector participation.

In Uruguay, CAF-AM has managed infrastructure debt funds, attracting institutional investors such as Pension Fund Administrators (AFAP). With over USD 1.3 billion in assets under management, these funds have financed nine PPP projects, including road circuits, educational centers, and the Central Railway. This year, the fourth fund was launched, attracting demand twice its initial offer, reflecting the market's confidence in the financing model.

CAF-AM incorporates best sustainability practices into its projects, which Fitch Ratings highlighted in its evaluation of Uruguayan funds, noting effective environmental risk management and greenhouse gas (GHG) emissions reductions. This commitment aligns with the 2030 Agenda and CAF's environmental policies.

To promote infrastructure financing, CAF-AM's General Manager emphasized the importance of public policies enabling a robust regulatory framework for the creation of Infrastructure Funds. He noted that the maturation of the PPP market requires legal adjustments to support alternative financing methods, fostering greater private sector participation in strategic projects.

The Forum also addressed topics such as investment prospects in infrastructure, regional integration for sustainable development, and resilience in public transportation, solidifying its role as a space for reflection and planning to drive growth in Latin America.

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