ICO and CAF sign a financing agreement for USD 300 million to promote sustainable and digital development in Latin America and the Caribbean
13 septiembre 2023
Today, the Chairman of the Official Credit Institute (ICO), José Carlos García de Quevedo, and the Executive President of CAF (Development Bank of Latin America and the Caribbean), Sergio Díaz-Granados, signed a new ICO International Channel Line agreement, worth USD 300 million to promote sustainable and digital development projects in Latin America and the Caribbean, which in turn support Spanish business activity.
This agreement is the ninth signed between the two entities during more than 25 years of collaboration. The signing took place in Madrid during the CAF Conference in Europe “European Union and Latin America and the Caribbean: a joint agenda for development", held within the framework of the first meeting of Ministers of Economy and Finance of the European Union and Latin America and the Caribbean, organised during the Spanish Presidency of the EU Council.
The Chairman of the ICO, José Carlos García de Quevedo, stressed that "this new agreement with CAF supports the internationalisation of Spanish companies and boosts the ICO's financial support for sustainable projects in Latin America and the Caribbean. As one of the leading national promotional banks at European level, the ICO plays a key role in public-private partnerships to promote projects that energise the green and digital transition."
The Executive President of CAF, Sergio Díaz-Granados, said that "our partnership with ICO is key to mobilising more financial resources and new investments in key development sectors in Latin America and the Caribbean, and is part of CAF's strategy to strengthen synergies with international actors and advance the 2030 Agenda. The ICO financing is translated into financial solutions that have a high impact on development and on the lives of Latin American and Caribbean people.
Supporting sustainable projects
Since the start of the partnership, the ICO has extended nine lines of credit to CAF for a total of USD 1.3 billion. Between 2021 and 2022, resources of approximately USD 200 million were disbursed to support projects in sectors such as water and sanitation, sustainable transport and telecommunications in Uruguay, Argentina and Brazil, contributing to the Sustainable Development Goals (SDGs) of the 2030 Agenda, specifically goals 3 (Good Health and Well-being), 6 (Clean Water and Sanitation), 11 (Sustainable Cities and Communities) and 13 (Climate Action).
About the ICO:
The Official Credit Institute, or ICO (www.ico.es), is a state-owned enterprise attached to the Spanish Ministry of Economic Affairs and Digital Transformation. The ICO has become a benchmark in the financing of both SMEs and large investment projects. The ICO contributes to inclusive and sustainable growth, promoting economic activities whose social, cultural, innovative or ecological importance make them worthy of promotion and development.
The ICO is a benchmark in the promotion of international Spanish business and actively contributes to the Strategy for the Internationalization of the Spanish Economy 2021-2027. In the last two years, it has mobilised more than EUR 2.2 billion in loans, guarantees and collateral to boost the expansion of Spanish companies in third markets.
About CAF:
The mission of CAF - Development Bank of Latin America - (www.caf.com) is to promote sustainable development and regional integration by financing projects in both public and private sectors, providing technical cooperation and offering other specialised services. Formed in 1970 and now consisting of 20 countries -18 in 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 an important generator of knowledge for the region.
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