ICO and BCIE sign a new financing agreement of up to $150 million to promote green and digital transition in Central America

12 septiembre 2024

  • This is the sixth agreement reached between the two institutions within the framework of the ICO International Channel Facility, which strengthens their institutional relationship in favour of Spanish companies based in Central America
  • The channelling of ICO resources will enable the development of sustainable projects and business digitalisation
  • The alliance between the two institutions in this programme has made it possible to finance 100 projects of Spanish companies to date for a total amount of US$423.9 million

The President of the Instituto de Crédito Oficial (ICO), Manuel Illueca, and the Executive President of BCIE (Banco Centroamericano de Integración Económica), Gisela Sánchez, have signed a new financing agreement for US$150 million (equivalent to €135 million). This agreement will enable resources to be channelled to sustainable and digital projects of companies with Spanish interest located in BCIE's main countries of activity, such as Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. This loan is intended to promote competitiveness, productivity, sustainable economic growth and employment generation. 

This operation also strengthens the ICO-BCIE institutional alliance, as it is the sixth loan that the ICO has granted to the Central American institution. From 2017 to date, all the agreements reached between the two institutions fall within the framework of the ICO International Channel Facility. These agreements have enabled the financing of 100 projects for a total amount of US$423.9 million in eight different countries (the five Central American countries mentioned above, plus Panama, Belize and the Dominican Republic) in sectors such as construction, wastewater treatment and financial activities.

Sustainable projects and business digitalisation

The agreement signed today at the ICO headquarters will make it possible to continue the environmental and sustainable development of companies through the financing of new operations with Spanish interest. Among the green projects to be implemented, several have already been identified in the water and sanitation and construction sectors.

ICO will also channel financial resources for the digitalisation of companies as a vehicle for economic growth. This loan will be present in the life of companies linked to technology and artificial intelligence tools to support the digital transformation of the productive fabric.

This sixth financing agreement between BCIE and ICO reaffirms the continued commitment of both institutions to strengthen economic integration and foster business innovation in the Central American region. The funds are intended to facilitate access to the financial resources necessary for companies to implement more sustainable practices.

ICO International Channel Facility 

The ICO International Channel Facility is aimed at promoting the activity and financing of projects of companies with Spanish interest with international presence in third markets, through intermediation with international financial institutions. So far, ICO has signed 43 financing agreements through 20 different counterparties, within the framework of the International Channel Facility, with a formalised amount of €4.76 billion.

This programme transfers the public-private partnership operating scheme of the ICO Facilities to multilateral, public promotional or private banks located abroad. This facilitates the application process for companies and incorporates the institution's knowledge of the local market as an added value. In addition, it allows Spanish companies and self-employed individuals to undertake their business activities in third markets with the possibility of financing in local currency in the countries where the projects or business activity is carried out.

About BCIE

BCIE was created in 1960 as the financial arm of the region's integration and development. Its resources are continuously invested in projects with development impact to reduce poverty and inequalities, strengthen regional integration and the competitive insertion of partners in the global economy, with special attention to environmental sustainability. BCIE is headquartered in Tegucigalpa with offices throughout Central America.

BCIE's financial soundness as the best credit in Latin America is backed by its high credit rating from various international agencies: Standard & Poor's with a rating of AA, Moody's with a rating of Aa3, and Japan Credit Rating with AA.
www.bcie.org

About ICO
The Instituto de Crédito Oficial (ICO) is a public business entity attached to the Ministry of Economy, Trade and Enterprise of the Government of Spain. With more than 50 years of experience, ICO has become a benchmark in business financing that contributes to boosting sustainable economic growth, competitiveness and the digital transformation of the Spanish business fabric.