CAF and Korea cooperate to attract financing and investment to the region
March 17, 2023
CAF—development bank of Latin America—has signed two new agreements with Korea Eximbank with the purpose of reinforcing joint cooperation in an effor to promote sustainable, green development in Latin America and the Caribbean in sectors of common interest
Korea Eximbank (KEXIM) and CAF—development bank of Latin America—have signed two new agreements. The first is an Interbank Credit Facility for up to USD 200 million intended to grant CAF an uncommitted revolving credit line tied to CAF projects in transactions such as export of goods and services from Korean suppliers, promoting Korean exports, and—when local companies require—capital to conduct business with Korea-related companies.
The second is a co-financing agreement to explore parallel financing opportunities and revitalize the economies of CAF’s shareholder countries, thus improving access to competitive resources in the different economic sectors of those nations, including (concessional) loans, capital and collaterals, among others.
CAF Executive President Sergio Díaz-Granados met today in Panama with KEXIM President Hee-Sung Yoon to advance in the implementation of these agreements and in reinforcing the relationship to improve the quality of life of Latin Americans and Caribbeans through investments in strategic projects for the region.
The relationship between CAF and KEXIM started in 2006, with the signing of a USD 20 million loan. These two new agreements are critical to further consolidate cooperation with Korea and to catalyze more funds into the region.