CAF-AM launches new debt fund for infrastructure in Colombia

CAF Asset Management (CAF-AM), a subsidiary of CAF, launched the CAF-AM Ashmore II Senior Debt Fund in Colombia. This new fund marks a milestone in mobilizing private capital for sustainable infrastructure projects in Latin America and the Caribbean. With an initial closing of USD 405 million, CAF-AM Ashmore II already has more than 40 projects in the pipeline, focused on transportation, energy, water and basic sanitation, adhering to the highest ESG standards.

The launch was led by Alberto Ñecco, general manager of CAF-AM; Camilo Villaveces, president of Ashmore Colombia; Alvaro Manotas, CEO of CAF-AM Ashmore; and Sergio Diaz-Granados, executive president of CAF.

"The need for financing in Latin America and the Caribbean is evident. As key players, we must correct the market failures that affect the region's growth. It is vital to identify sources of financing and develop ambitious projects that boost the economy. CAF and CAF-AM are committed to this purpose, backed by advances such as the capital increase in 2021," said Sergio Diaz-Granados, executive president of CAF.

Among the advantages of this new fund are its capacity to grant long-term debt indexed to inflation, with a focus on impact and sustainable investments in different infrastructuresubsectors (transportation, energy, water and basic sanitation, among others), adhering to the best Environmental, Social and Governance (ESG) standards and practices, along with CAF's environmental and social safeguards.

"For CAF-AM it is a joy to celebrate with you the launch of Fund II in Colombia. CAF-AM began operations 10 years ago and our first initiative, Fund I, has been extremely successful, financing 7 Fourth Generation (4G) projects, a national program that improves road infrastructure, key to the region's competitiveness," explained Alberto Ñecco, general manager of CAF-AM.

CAF Asset Management already has a senior debt fund in Colombia, in partnership with Ashmore, a professional asset manager specializing in emerging markets. CAF-AM Ashmore I enabled the successful placement of USD 475 million, which financed 7 key road projects:

• The Cartagena-Barranquilla Highway, which connects two major cities in the Atlántico.
• The Ruta al Mar concession, which improves connectivity between Medellín, Antioquia and the port of Cartagena.
• The Alto Magdalena concession, which connects the central-western departments (Tolima, Caldas and Cundinamarca).
• The Río Magdalena Highway, which provides a better connection between Medellín and the northeast of the country.
• These road works represent more than 1,200 km of projected highways, of which more than 900 km have already been completed.

The launch of this new fund is evidence of the success of CAF-AM's innovative business model, which mobilizes private capital to develop strategic public infrastructure, strengthening local industry and boosting the domestic financial market in CAF member countries.

*CAF-AM, a professional asset manager and subsidiary of CAF -development bank of Latin America and the Caribbean-, focuses on mobilizing local and international private capital resources for infrastructure projects that are a priority for the region's development.