| The continuous improvement of the quality of life of Latin Americans is one of CAF’s primary goals. Thus, the institution is focused on developing initiatives to stimulate the growth of private enterprise in the economies of its shareholder countries, in order to generate jobs and to produce more goods and services for the population.
Specifically, CAF finances the private productive sector by providing long-term credit to companies for the construction and purchase of assets (civil works, machinery, and equipment) for the production of goods or the rendering of services, as well as credit lines for working capital, which may be used, for example, to purchase raw material. Likewise, the Corporation offers long-term project financing.
In many cases of long-term financing, CAF does not act alone, but uses co-financing methods with other private, public, or multilateral financial institutions, or grants A/B loans – where the creditor is the holder of the credit (participant A) and shares certain privileges with the B participants. CAF’s efforts to support the private sector include financial advisory services in the areas of design and implementation of public bids (concessions and privatizations), public-private agreements (PPP), mitigation of risks (partial credit and risk guaranties), capturing funds (debt and/or capital), liability refinancing, company appraisals, and mergers and acquisitions.
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