Investors

In 2022, CAF approved 305 operations for a total of $14.1 billion, 6.9% above what was approved in 2021. Of these, $2 billion were used to finance investment programs and projects aligned with the long-term development strategies of the countries of the region.

The approved operations were located in the sector of productive infrastructure, mainly energy, transport, and telecommunications ($1.7 billion), as well as in the sectors linked to sustainable development in the region, such as water and sanitation, education, health, and urban development ($2.2 billion), which reflects CAF’s interest in supporting the most vulnerable sectors of the countries.

Within the framework of CAF’s energy transition support strategy, worth noting is the approval of a $300 million loan to Pan American Energy, Argentina Branch (PAE) to fund green projects, provide greater funds and liquidity to the firm’s supplier chain and to contribute to Argentine energy security with an emphasis on gas as a transition fuel; and a line of credit to Gas Natural de Lima y Callao S.A. (Cálidda) for $150 million for the partial financing of the investment plan that mainly includes the expansion and maintenance works of the pipeline network of the residential consumer gas system of Lima and Callao in Peru.

On the other hand, the institution’s support for territorial development with the approval of the Colombian Prosperity Program stands out, as an opportunity for the financing of operations in favor of territorial entities, its decentralized entities, and public service providers, with national guarantee, for $1.2 billion to be implemented over five years.

Throughout 2022, CAF’s commitment to driving the Sustainable Development Goals (SDGs) was reflected in approved operations that contributed directly and indirectly to the fulfillment of up to 16 SDGs.

CAF has been present in the most demanding international capital markets for more than three decades, focused on a strategy based on broadening the investor base, improving the liquidity of its issuances, and achieving competitive funding in terms of tenor and currencies. 

CAF's main capital market activities have consisted in bond issuances in the most important international markets in America, Europe, Asia, and Australia. In recent years, CAF has increased its activities in helping develop the local capital markets with issuances in shareholder countries such as Colombia, Costa Rica, Mexico, Paraguay, Panama, Peru, and Uruguay.

CAF maximizes the impact and scope of its operations through strategic alliances, which allow mobilizing resources to achieve the Sustainable Development Goals (SDGs). These alliances allow CAF to diversify its financing sources and make combined financing (Blended Finance) to enhance development initiatives and offer more favorable financial conditions to its member countries.

CAF’s success accessing the international capital markets is mostly due to the high credit ratings assigned by the main international rating agencies.

These agencies have recognized the Institution's outstanding creditworthiness based on a strong capital base, which resulted from the continuous support from the shareholders through repeated increases in subscribed and paid-in capital and a greater loan portfolio diversification. 

Adopting as its own the challenges outlined by the UN Sustainable Development Goals (SDG), and with the conviction that Latin American countries can make a qualitative leap towards the construction of a more inclusive, low carbon and resilient society, CAF has formulated an agenda to assist countries in the pursuit and achievement of such targets. CAF’s strategic approach focuses on mobilizing financial resources into the region to promote investments in infrastructure, energy, social development, environmental sustainability and climate change.

Given the recent changes over the last couple of years in the financial markets and in line with the recommendations given by international regulators, CAF is currently in the process of substituting the LIBOR rate.

For several decades, the London Interbank Offered Rate (LIBOR) has played a fundamental role, being the main interest reference rate for the financial markets. However, banks, authorities, and international regulators have suggested searching for alternative rates over the last couple of years.

At the 2015 Addis Ababa Conference, the importance of private investment in achieving the Sustainable Development Goals (SDGs) was highlighted, along with the key role of multilateral development banks (MDBs) in mobilizing these resources. In 2016, the MDB Methodology for Private Investment Mobilization - Reference Guide was created to standardize definitions and harmonize the measurement of private investment mobilization, bringing together several MDBs and development finance institutions (DFIs). Since then, the MDB Task Force has published the MDB Joint Report annually, presenting the private capital mobilization figures achieved by the institutions in this group. CAF – Development Bank of Latin America and the Caribbean joined this task force in 2022.

At CAF – Development Bank of Latin America and the Caribbean, we have dedicated teams focused on directing private sector investments toward projects that foster sustainable development in the region. Our commitment is to facilitate capital that drives economic growth, sustainable infrastructure, and social well-being through strategic collaborations with investors. Mobilizing these resources not only supports our initiatives but also generates transformative impact in key sectors across Latin America and the Caribbean.