Private Capital Mobilization
Concepts
At the 2015 Addis Ababa Conference, the importance of private investment in achieving the Sustainable Development Goals (SDGs) was highlighted, along with the key role of multilateral development banks (MDBs) in mobilizing these resources. In 2016, the MDB Methodology for Private Investment Mobilization - Reference Guide was created to standardize definitions and harmonize the measurement of private investment mobilization, bringing together several MDBs and development finance institutions (DFIs). Since then, the MDB Task Force has published the MDB Joint Report annually, presenting the private capital mobilization figures achieved by the institutions in this group. CAF – Development Bank of Latin America and the Caribbean joined this task force in 2022.
At CAF – Development Bank of Latin America and the Caribbean, we have dedicated teams focused on directing private sector investments toward projects that foster sustainable development in the region. Our commitment is to facilitate capital that drives economic growth, sustainable infrastructure, and social well-being through strategic collaborations with investors. Mobilizing these resources not only supports our initiatives but also generates transformative impact in key sectors across Latin America and the Caribbean.
Who are the members of the MDB Task Force?
What is Private Capital Mobilization?
Benefits for Clients and Investors
Products
The products with the potential to generate private capital mobilization in CAF are:
1 |
2 |
3 |
||
|
A/B Structures and Parallel Loan |
Equity Investments |
Guarantees |
||
4 |
5 |
6 |
||
|
Special Purpose Private Investment Funds |
Risk Transfers with or without Resources |
Financial Advisory Services |
Items 1 and 5 contain the products of the Syndication Desk.
AB Loan:
It is a financing mechanism used to mobilize private sector resources for projects in emerging markets. An AB loan is structured in two tranches:
- Tranche A, financed directly by CAF with resources from its own balance sheet.
- Tranche B, financed by commercial banks or other private or mixed financial institutions that participate as lenders under similar conditions as Tranche A.
CAF acts as the lender of record for both tranches.
Our Investors
CAF collaborates with a global network of investors and financial partners, including commercial banks, investment funds, and other development-focused actors, to expand the reach of our projects and ensure that private capital has a lasting impact in the region.
Below are the cumulative mobilization figures by investor with exposure through December 2024. The figures present the contributions of our investors in private sector mobilization, divided by investment amount, geography/region, shareholder country and typology:
CAF Mobilization Figures
Total Private Mobilization Figures (Direct+Indirect) by Year
Expressed in USD million
Total Private Mobilization Figures (Direct+Indirect) by Product
Expressed in USD million
Success Stories
Some of the syndication team's success stories in recent years are highlighted below:
Acknowledgments
Impact Initiative of the Year - Latin America and the Caribbean
A pioneering loan from Banco Cooperativo Sicredi, supported by CAF-Development Bank of Latin America and the Caribbean-and the Japan International Cooperation Agency (JICA), has won the “Impact Initiative of the Year: Latin America and the Caribbean” award.
Reports
Through its Access to Information and Institutional Transparency Policy, CAF - development bank of Latin America and the Caribbean reaffirms its commitment to strengthen institutional transparency and promote access to information, adopting best practices and international standards in this area. All information that CAF discloses, disseminates and makes available to the public through its digital channels is strictly for reference, information and corporate communication purposes. If you have any doubts, questions or requests for additional information, please contact us at transparencia@caf.com
The report presented here contains referential information with cut-off and update on the date indicated. This report is the property of CAF and is for reference, information and corporate communication purposes only. Its reproduction, distribution, publication or any other form of use (total or partial) is prohibited without the prior and formal authorization of CAF.
Become an investor
If you represent an organization interested in co-financing high-impact projects in the region, we invite you to join our network of strategic investors.
For specific information, please contact us by e-mail: CAF Syndications sindicaciones@caf.com
