- Region: Latin America and the Caribbean
- Untied Loans
The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) signed on March 23 a loan agreement to set up a credit line totaling up to USD 200 million (of which the JBIC portion is USD 100 million) with Corporación Andina de Fomento (CAF). The credit line is co-financed with Mizuho Bank, Ltd. (lead arranger), The Joyo Bank, Ltd., The Bank of Yokohama, Ltd., The Hachijuni Bank, Ltd., The Bank of Saga, Ltd. and The Gunma Bank, Ltd. The loan is extended under JBIC's Growth Investment Facility*1/QI-ESG Window. JBIC will also provide a partial guarantee for the co-financed portion.
This credit line is intended to finance, through CAF, the necessary funds for environment-related projects such as the supply of water, the prevention of water pollution and the maintenance and upgrade of electric power distribution networks in the Latin American and Caribbean member nations of CAF, as part of GREEN operations. This loan follows similar loans made to CAF in March 2011*2 and April 2016*3.
CAF, whose main shareholders are its 19 member countries*4 mainly in the Latin American and Caribbean region, aims to achieve economic integration, as well as to promote economic development and trade finance in the region. JBIC has built a strong cooperative relationship with CAF over a period of more than forty years since 1975, through JBIC loans for infrastructure projects, as well as for exports of machinery and equipment to the Latin American and Caribbean region and for industrial investment and export promotion in the region. This loan, which focuses on the environmental sector, will further strengthen cooperation between the two institutions.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with regional development banks by drawing on its various financial facilities and programs for structuring projects, and performing its risk-assuming function.