CAF approves strengthening the institution’s equity for US $ 7,000 million

The Board of Directors of the development bank of Latin America (CAF) approved by consensus the resolution of the tenth patrimonial strengthening of the institution, the largest in its history, with a capital increase for a total amount of US $ 7,000 million. This constitutes a vote of confidence of the shareholder countries of the institution regarding the value proposal presented by the administration to convert the multilateral organization into the Bank of economic reactivation and the Green Bank of Latin America and the Caribbean in this next decade.

In the last 30 years, CAF has increased the size of its portfolio nearly 50 times and has become an important ally and strategic partner for the development of Latin America and the Caribbean. With this new capital contribution, the institution will be able to double its portfolio by 2030.

“This patrimonial strengthening is a great achievement of the consensus between Latin Americans and the Caribbean. We are united to promote an institution that is firmly committed to the economic reactivation of our countries and the well-being of its people. This is the largest capital contribution in the history of our bank and, the fact that it is carried out in the complex moment that we are living as a result of the global pandemic is a great example of the commitment of our countries to one of its main assets for development ”, said Sergio Díaz-Granados, president executive of the institution.

The agenda proposed by CAF to support the reactivation and development of its shareholder countries, reinforced with this capital increase, will focus on the following areas of action: financing public and private investment programs and projects; mobilizing resources from third parties and redirecting their financing to the private sector; budget support in a countercyclical manner; knowledge management and technical assistance; the adoption of a digital transformation agenda and the strengthening of Gender approach, Diversity and inclusion.

In the same way, to become the Green Bank of Latin America, CAF will allocate US $ 25,000 million over the next five years for operations that help the countries of the region to increase climate resilience, promote the energy transition, achieve growth low in greenhouse gas emissions and strengthen the conservation of natural ecosystems and biodiversity. In this way, the institution’s green financing will go from 24% in 2020 to 40% in 2026, and all its operations will be aligned with the objectives of the Paris Agreement.