CAF approves USD 5.2 billion for sustainable development and incorporates two new countries

At a historic Board of Directors meeting, CAF -development bank of Latin America and the Caribbean- approved a record US$5.2 billion for 16 operations in 10 countries in the region, which will be allocated to infrastructure, climate action, human development, urban mobility and energy transition projects. In addition, the institution continues to expand in Central America and the Caribbean with the inclusion of Guatemala and St. Lucia, the conversion of Barbados to a member country and the capital increase of Antigua and Barbuda.

The funds approved by CAF will be used, among others, to modernize critical infrastructure, such as the railroad network in Chile and aqueduct systems in Argentina; to promote the energy transition, with projects such as the Chichas Solar Plant in Bolivia and the modernization of the electricity sector in the Bahamas; to strengthening climate action and environmental conservation, such as the biodiversity program in Colombia and forest management in Panama; to improving essential social services, including mental health in Colombia and prison systems in Peru; to promoting sustainable mobility, with investments in Bogota and Lima; and to supporting SMEs in Paraguay by facilitating their access to financing.

"This has been a historic board of directors. Never before has CAF approved so many credit operations, nor such a large amount to finance the integral development of Latin America and the Caribbean. This demonstrates that the institution is filling financing gaps and consolidating its position as the leading multilateral in promoting progress and well-being for all citizens. In addition, the incorporation of Guatemala and Saint Lucia broadens our geographic scope and will allow us to deepen regional integration," said Sergio Díaz-Granados, CAF's executive president.

Regarding the incorporation of new countries, the Board's approval marks the beginning of the formal process for Guatemala and St. Lucia to become shareholders. As Series "C" shareholders, both countries will have access to CAF's financial, technical and knowledge services designed to support their development priorities and improve the quality of life of their populations. This further strengthens CAF's relationship with Central America and the Caribbean, and reaffirms the bank's commitment to sustainable and inclusive development in the region.

These are some of the operations approved by CAF's Board of Directors:

• Improvement of the aqueduct system in the Province of Chubut. CAF approved a USD 150 million loan to finance the "Sustainable Aqueduct System Program for the Province of Chubut," an initiative that will directly benefit the cities of Sarmiento, Comodoro Rivadavia, Rada Tilly, and Caleta Olivia.
• Construction of the Chichas Solar Power Plant in Bolivia.. CAF approved financing of US$110 million for the development of the Chichas Solar Plant, a renewable energy project that reinforces Bolivia's commitment to energy transition and environmental sustainability.
• Modernization and expansion of Chile's railway network.. In a decision that reaffirms its long-term commitment to sustainable infrastructure development in Chile, the Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved a second phase of financing of up to US$700 million for Empresa de los Ferrocarriles del Estado (EFE).
• Support for reforming the energy sector in the Bahamas. This is the first financing (US$100 million) received by the country since it became a CAF shareholder and will support the modernization of electricity infrastructure, the expansion of renewable energy, and improve energy affordability and resilience for Bahamian households and businesses.
• Boosting climate action in Colombia. CAF approved a US$350 million loan to finance the "Program to Support Climate Action, Sustainability and Biodiversity" and support the Colombian government in its comprehensive strategy to address climate change, environmental protection and biodiversity, as well as the promotion of sustainable finance. This program will strengthen the country's capacity to face climate challenges while preserving its invaluable natural heritage.
• Improving access to mental health services in Colombia. CAF approved a $150 million loan for Colombia to improve access to and quality of mental health services, to prioritize primary care and reduce gaps in guaranteeing the right to health in vulnerable populations, rural areas and historically excluded communities.
• Support for the Aerocivil Investment Plan in Colombia. CAF approved a US$240 million corporate loan to support the financing of Aerocivil's Strategic Investment Plan 2025-2030 in Colombia, which aims to modernize air navigation infrastructure and airport services in priority regions of the country. The new infrastructure will reinforce Colombia's key role in intraregional flight operations and strengthen the integration of Latin American countries.
• Improving urban mobility in Bogota. CAF approved a US$200 million loan to finance sustainable mobility projects in Bogota as part of the Capital District's Investment Plan. These resources will specifically support the initiatives of the 2024-2027 District Development Plan "Bogotá Camina Segura," which seeks to improve the quality of life of citizens through a safer, more inclusive and sustainable mobility system.
• Improved management of Panama's forests. CAF approved a USD 300 million credit for Panama to improve forest management and support the continuity of policies that promote sustainable forest management, ecosystem conservation and green financing.
• Sustainable infrastructure projects throughout the region. CAF approved a US$250 million non-revolving line of credit to partially finance the Sacyr Group's investment plan for sustainable development projects in CAF member countries. The financing may be used for various initiatives such as construction of sustainable infrastructure, drinking water and basic sanitation projects, social infrastructure (hospitals and educational centers), waste management solutions, circular economy, green business and financial inclusion, among others.
• CAF's first green credit for Costa Rica. CAF approved a Contingent, Revolving and Uncommitted Credit Line in favor of the Republic of Costa Rica for up to USD 500 million. This operation is the first green liquidity line approved by the institution and the first operation of this type for Costa Rica as a member country.
• Historic program to modernize Peru's justice and penitentiary system. CAF approved a line of credit for US$800 million to finance Peru's "Program to Improve and Close Gaps in the National Penitentiary System," the most ambitious program of its kind in South America, which seeks to radically transform the conditions of persons deprived of liberty in the country.
• Support for SMEs in Paraguay. CAF approved the renewal and increase of the revolving, uncommitted line of credit in favor of the Agencia Financiera de Desarrollo del Paraguay (AFD) for up to US$100 million, doubling the current amount of US$50 million. This decision, taken by the institution's Board of Directors, seeks to strengthen economic development and productive investment in Paraguay, with special emphasis on financing for small and medium-size companies.
• Expansion of access to natural gas in Lima and Callao. CAF approved an A/B loan of up to US$500 million for Gas Natural de Lima y Callao (Cálidda). Cálidda is Peru's main natural gas distribution company, and currently provides access to a cleaner, safer, and more economical source of energy for approximately 9 million people in Peru.