- Region: Latin America and the Caribbean
- Untied Loans
March 28, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on March 26 an untied loan agreement totaling 300 million US dollars with Corporación Andina de Fomento (CAF; or Andean Development Corporation in English). This represents the first loan which JBIC has provided to the Latin American and Caribbean region under the GREEN Initiative*2, along with the loan agreement which JBIC signed with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) on the same day. The loan was cofinanced with private financial institutions (The Bank of Tokyo-Mitsubishi UFJ, Ltd. as lead arranger, and Mizuho Corporate Bank, Ltd.), with JBIC providing a guarantee for their cofinanced portion.
- The loan will provide funding required for environment-related loans, focusing on renewable energy projects in the Latin American and Caribbean countries that are working hard to reduce greenhouse gas (GHG) emissions. It is expected to accelerate the implementation of renewable energy technologies and reduce GHG emissions in this region. Countries such as Colombia, Peru, Brazil, and Chile have adopted medium- and long-term environmental policies to accelerate the development of renewable energy sources. Thus, the loan is expected to encourage the environmental policies of these countries, as well as promote the use of renewable energies and reduce GHG emissions within the region.
- CAF is a multilateral financial institution that has 18 shareholder countries, mostly in the Latin American and Caribbean region.*3 CAF is committed to promoting sustainable development and regional integration. In addition, CAF is committed to supporting and strengthening the environmental preservation efforts of the governments, government agencies and private institutions within the region. JBIC has established a strong partnership with CAF over more than 30 years through cooperation in numerous operations, such as financing regional infrastructure projects, supporting Japanese exports to the region, and facilitating regional trade finance during the recent financial crisis.
- JBIC is committed to preserving the global environment in cooperation with multilateral institutions in order to contribute to the sound development of the Japanese and international economies.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information dated April 27, 2010.
- *3 They are: Bolivia, Colombia, Ecuador, Peru, Venezuela, Brazil, Uruguay, Panama, Argentina, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Paraguay, Trinidad & Tobago, Spain and Portugal (as of the end of February 2011).