CAF promotes the development of Jamaica with its first bond issue in local currency

April 17, 2024

The Executive President of CAF, Sergio Diaz-Granados, met with the Minister of Finance and Public Service, Nigel Clarke, as CAF continues to strengthen the partnership with its existing shareholder countries. During the meeting, he highlighted a recent bond issue in Jamaican dollars that is in line with CAF's mission to assist its shareholder countries in the development and deepening of their domestic capital markets and local currencies.

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Recognizing this year as the 25th anniversary of Jamaica being a shareholder country in CAF - Development Bank of Latin America and the Caribbean, the Executive President, Sergio Diaz-Granados, reiterated CAF’s commitment to promote the sustainable development of Jamaica through joint work with the public and private sectors. This was expressed by the Executive President during a meeting with the Minister of Finance and Public Service, Dr. the Honourable Nigel Clarke.

At the meeting, the Executive President highlighted CAF's first bond issue for 4 billion Jamaican dollars, equivalent to USD 26.1 million. “This operation constitutes a milestone, since it demonstrates CAF's support for such a sizeable transaction in local currency and gives the opportunity to foreign investors to participate in its capital market,” he added.

The Minister of Finance and the Executive President agreed to continue to strengthen the relationship through financing, technical assistance and generation of knowledge and to work together to improve the quality of life of Jamaican citizens as well as enhance the collaboration between the Caribbean and Latin America.

CAF was originally established by five Andean member countries: Bolivia, Colombia, Ecuador, Peru and Venezuela. A deeper relationship with the Caribbean started in 1994 when Trinidad and Tobago (T&T) signed the agreement to become a Series C CAF Member. Later, Jamaica and Dominican Republic became a Series C shareholders in 1999 and 2004 respectively. In September 2022, CAF appointed its first Regional Manager for the Caribbean. The Minister of Finance of Trinidad and Tobago and the Executive President of CAF, formally launched CAF's Regional Management Office for the Caribbean in November of that year.

In March 2024, the CAF Board of Directors, meeting for the first time in Punta Cana, Dominican Republic, authorized the expansion of the shareholder base and validated the incorporation of Bahamas, Dominica, and Grenada as Series C Shareholders. This will enable them to access the organization’s technical, financial, and knowledge services including dedicated grant funding for project preparation with a view to mobilizing investments for their development priorities.

The Caribbean’s response to CAF´s deliberate and tailored outreach has been enthusiastic and reassuring. Within a year of the establishment of the CAF´s Caribbean Regional Management Office, 8 additional CARICOM Member States formally expressed interest in becoming shareholders of CAF.