Latin America and the Caribbean working on the 2030 Agenda for Sustainable Development

SEP / 19th and 20th / 2022. New York City

In a year CAF achieves more financial strength and added new countries to become the green bank and lead the region’s economic reactivation

September 01, 2022

The largest capitalization approval in the bank’s history for USD 7.000 million; Chile, Costa Rica and the Dominican Republic shareholding increase; El Salvador and Honduras incorporation; and the advancement of the credit rating to AA- by S&P are some of the good news of Sergio Díaz-Granados' first year in office in CAF's Presidency.

CAF approves USD 1.650 million and advances in its capitalization +view more
CAF obtains more resources and regional presence to spearhead economic reactivation in Latin America and the Caribbean and to become the green bank of the region +view more

“Latin America and the Caribbean have a stronger CAF thanks to the commitment of their leaders to support them financially and technically at a time when they most need it to face social, economic and environmental challenges without leaving anyone behind,” said Sergio Díaz-Granados when he’s referring to his balance of the first year of management as executive president of the multilateral organization.

The USD 7.000 million approval of capital increase, that will allow the portfolio to double by 2030 and promote the goal of being the green bank and the Latin America and the Caribbean’s economic reactivation, by the 19 countries and 13 private banks that form the institution, was the first vote of confidence received from the Board of Directors and the Shareholders' Meeting.

The second one was to reach the incorporation of new countries and increase the shareholding of others. Chile, Costa Rica, El Salvador, Honduras and the Dominican Republic became full members of the multilateral organization, reaffirming CAF's commitment to work in favor of the integration of the region to contribute to improving the quality of life of Latin American and Caribbean people, along with sustainable development.

These are some of the good news for Latin America and the Caribbean that conduct the risk rating agency S&P Global Rating to increase CAF's rating to AA- from A+. The firm’s report highlighted: “The positive outlook reflects our opinion that the role and importance of CAF for policies and their capital position can be strengthened backed by significant capital support from its members, which could significantly counteract the rating vulnerabilities in the region.”

Continuing with the goal of becoming the region’s green bank, CAF has carried out different actions to make it happen, assigning USD 25.000 million to green financing by 2026, which implies an increase from 24% to 40% of total approvals. As well as initiatives linked to ocean conservation, USD 1.250 million will be assigned over the next five years to finance projects that contribute to preserving, revitalizing and promoting Latin America and Caribbean marine and coastal ecosystems. Also, projects related to protecting the Pacific Ocean in Colombia, Costa Rica, Panama and Ecuador are highlighted.

Latin America and the Caribbean’s economic and social reactivation is a priority for CAF. After granting more than USD 16.000 million to support the authorities to face the COVID-19 pandemic in Latin America and the Caribbean. In the last 12 months, CAF has approved more than USD 12.000 million to promote the well-being of the population, growth, job creation and competitiveness in areas such as water and sanitation, infrastructure roads, social development, energy transition, digital transformation, climate action and food security, among others.

Raising the voice of Latin America and the Caribbean on the global stage and promoting regional integration through active dialogue with each one of the leaders of the 21 countries that currently form the institution, has been one of the marks of the first year of management by Sergio Díaz-Granados and Christian Asinelli, Corporate Vice President of Strategic Programming. In the last 12 months, more than 30 agreements have been signed with strategic entities to add resources in technical assistance, financing and knowledge generation in favor of the most vulnerable.

“In this first year, we have achieved the unanimous support of the shareholders with the capitalization for the regional space for integration and reactivation. What comes further now on is to travel the entire region to double the portfolio in the renewed agenda that we have set ourselves to be the Latin America and the Caribbean’s green bank, of the economic and social reactivation, the strategic ally of the private sector and subnational governments to improve the quality of life of the people, close the gaps and take the leap towards development”, added Díaz-Granados.

CAF will continue working to double the bank's operating size by 2026 to reach financing growth at a rate of 7% or 8% per year to support Latin Americans in an even more challenging global context.