CABEI, CAF and CDB sign first Exposure Exchange Agreements between non-AAA and Regional MDBs

The Central American Bank for Economic Integration (CABEI), CAF – Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank (CDB) have signed landmark Exposure Exchange Agreements (EEAs) totaling US$1.15 billion. These agreements represent a significant step toward strengthening capital positions, enhancing financial resilience, and advancing sustainable development across Latin America and the Caribbean.

CABEI (rated AA/Aa3) and CAF (rated AA/Aa3/AA-) signed a US$700 million EEA, while CDB (rated AA+/Aa1/AA+) and CABEI executed a US$450 million EEA. These transactions set a precedent, as they are the first of their kind between Multilateral Development Banks (MDBs) rated below AAA and regional MDBs respectively, underscoring the institutions’ financial strength and growing strategic alignment. Considering the recommendations of the G20’s Capital Adequacy Framework, these agreements reflect a broader effort within the MDB community to adopt innovative financial instruments that enhance balance sheet efficiency and expand development impact.

Exposure Exchange Agreements enable MDBs to diversify risk by synthetically exchanging portions of their sovereign credit exposures. These transactions do not involve the transfer of loans or affect the relationship between borrowers and their original lenders; rather, they provide an efficient mechanism for reducing portfolio concentration, strengthening capital metrics, and creating additional lending headroom for member countries.

The agreements highlight each institution’s commitment to leveraging their capital bases more effectively, mobilizing greater resources for sustainable development, and deepening regional cooperation. They also reinforce institutional ties among CABEI, CAF, and CDB, paving the way for further collaboration on innovative financial solutions and joint development goals.

CABEI’s Executive President, Gisela Sánchez, emphasized the importance of the agreements, stating: “These agreements represent a milestone in our history and a concrete result of our commitment to transforming development financing through strategic partnerships and financial innovation. As part of CABEI’s new Strategy, which prioritizes capital efficiency and the use of innovative financial instruments, these collaborations with CAF and CDB reinforce our role as a catalyst for regional integration and sustainable development. Most importantly, they mark a significant step toward improving the lives of millions of people in Central America, the Caribbean and beyond.”

CAF’s Executive President, Sergio Díaz-Granados stated: “This agreement with CABEI is a milestone in cooperation among development banks. It not only reflects our financial strength and capacity for innovation but also sets a precedent for capital optimization and greater support for Latin America and the Caribbean. By efficiently diversifying risks, we enhance our ability to extend new loans to our member countries, financing critical infrastructure, energy transition, and social development projects. These are the types of partnerships we need to drive sustainable development in the region.” 

CDB’s President, Daniel Best, emphasized that the EEA aligns with his vision to “Innovate” by introducing forward-looking capital solutions that enhance CDB’s ability to deliver sustainable and impactful development financing to its member countries. “This agreement with CABEI is a milestone in cooperation among development banks. It not only reflects our financial strength and capacity for innovation but also sets a precedent for capital optimization and greater support for Latin America and the Caribbean. By efficiently diversifying risks, we enhance our ability to extend new loans to our member countries, financing critical infrastructure, energy transition, and social development projects. These are the types of partnerships we need to drive sustainable development in the region,” he stated.

The signing of these EEAs marks a key milestone in the broader Balance Sheet Optimization (BSO) strategies being pursued by the MDBs to enhance capital adequacy, enhance lending capacity, and deliver long-term value for their members. By leveraging innovative instruments like the EEA, the three institutions are positioning themselves as leaders in modernizing development finance, demonstrating their commitment to impactful, collaborative solutions that strengthen operational capacity to drive sustainable growth and resilience across Latin America and the Caribbean.

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About CABEI - A Bank with Triple Positive Impact

CABEI is a multilateral development bank with 64 years of experience and 15 member countries, including all the nations of Central America, Panama and the Dominican Republic, Belize, Mexico, Colombia, Argentina, and Cuba in the Americas; Spain in Europe; and the Republic of Korea and the Republic of China (Taiwan) in Asia. Over the past 20 years, projects financed by CABEI have represented approximately 50% of the multilateral development banking resources directed toward the Central American region.

CABEI holds credit ratings of AA Stable A1+ from S&P (September 2024), Aa3 Stable P1 from Moody’s (September 2024), and AA Positive from JCR (April 2025). The Bank seeks to leverage its financial strength and key competencies to serve as a driving force for positive transformation in the countries it serves.

www.bcie.org - Twitter / Facebook / Instagram / LinkedIn 

About CAF – Development Bank of Latin America and the Caribbean

CAF – development bank of Latin America and the Caribbean – has the mission of promoting sustainable development and regional integration by financing public and private sector projects, providing technical cooperation, and delivering other specialized services.

Established in 1970, CAF currently consists of 23 countries – 21 from Latin America and the Caribbean, along with Spain and Portugal – and 13 private banks. It is one of the main sources of multilateral financing and a key generator of knowledge for the region.

For more information, visit www.caf.com CAF, Strategic Communications Department, prensa@caf.com

Find us on: Facebook: CAF.America.Latina / Twitter: @AgendaCAF

About the Caribbean Development Bank

The Caribbean Development Bank is a regional financial institution established in 1970 for the purpose of contributing to the harmonious economic growth and development of its Borrowing Member Countries (BMCs). In addition to the 19 BMCs, CDB’s membership includes four regional, non-borrowing members (Brazil, Colombia, Mexico, and Venezuela) and five non-regional, non-borrowing members (Canada, China, Germany, Italy and the United Kingdom). CDB’s total assets as at December 31, 2023, stood at US$3.43 billion (bn). These include US$2.03 bn of Ordinary Capital Resources and US$1.40 bn of Special Funds Resources. The Bank is rated Aa1 Stable by Moody’s, AA+ Stable by Standard & Poor’s and AA+ Stable by Fitch Ratings. Read more at caribank.org.