CAF Asset Management Begins Operations in Costa Rica to Mobilize Resources for Infrastructure and Public Services Projects
February 15, 2024
With the authorization granted on February 13, 2024 by the Superintendencia General de Valores (SUGEVAL), the regulatory and supervisory body of the Costa Rican securities market, for the public offering and registration in the National Registry of Securities and Intermediaries of the Senior Risk Capital Investment Fund for Infrastructure in Costa Rica BAC - CAF-AM I, the start of operations of CAF Asset Mangaement (CAF_AM), a 100% owned subsidiary of CAF - Development Bank of Latin America and the Caribbean - in Costa Rica is officialized.
CAF-AM allows funds that typically seek long-term returns in local currency to be applied to projects that precisely require this type of financing, thus improving the country's capacity for infrastructure development and allowing national savings to be directed towards the development of the country itself.
With the Senior Risk Capital Investment Fund for Infrastructure in Costa Rica BAC - CAF-AM I, investment commitments of approximately US$ 288 million in local currency are expected to be made for strategic investments mainly in infrastructure and public services projects in the areas of transportation, energy, telecommunications, water and sanitation, education, health, among others; that contribute to closing gaps, improving the living conditions of its citizens and increasing the country's productive capacity.
In this regard, the General Manager of CAF-AM, Alberto Ñecco, stated: "Aware of Costa Rica's potential and capacity to promote this type of innovative solutions, CAF-AM has begun deploying its activities to mobilize private capital to finance development projects that generate a direct impact on the well-being of Costa Ricans. To this end, SUGEVAL's authorization is a starting point that will also allow us to strengthen the capital market in the country, with a replicable model at the regional level".
This vehicle, which will have the advisory services of CAF-AM as a specialized manager and will be administered by BAC San José, Sociedad de Fondos de Inversión S.A., will improve the local currency offering of long-term financing and is aimed at the institutional investor segment, including pension funds, insurance companies, family offices, among others.
CAF-AM has been a pioneer in the deployment of this type of solution in the region with successful experiences in Uruguay and Colombia in the management of private equity funds - mainly pension funds - for more than US$ 1.2 billion. These funds have made possible the progress of projects in roads such as the 4G in Colombia and more than 200 educational institutions, road projects and the central railway in Uruguay.
In the coming weeks, CAF-AM plans to start roadshows with investors.