Untied Loan to CAF
Supporting Efforts to Overcome Public Health Emergency in Latin America Due to Spread of COVID-19
- Region: Latin America and the Caribbean
- Untied Loans
The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) signed on March 25 a loan agreement amounting to up to USD90 million, of which JBIC portion is USD45 million, with Corporación Andina de Fomento (CAF). The loan is co-financed with the Tokyo Branch of BNP Paribas S.A. (lead arranger). JBIC will also provide a guarantee for the portion co-financed by the private financial institution.
The loan is intended to provide, through CAF*1
, the funds required for public health efforts*2
in the Argentine Republic and the Plurinational State of Bolivia, which are suffering enormous economic and fiscal impact and damage caused by restrictions on commercial activities due to the spread of COVID-19. This financing will help to address global financial disorder and strengthen Japan's relationship with the Argentine Republic and the Plurinational State of Bolivia, which are key exporters of lithium carbonate and zinc ore to Japan.
JBIC has built a strong cooperative relationship with CAF over a period of more than forty five 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.
As Japan's policy-based financial institution, JBIC will continue to provide financial support for efforts to overcome public health emergencies in cooperation with regional development financial institutions by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
Two-step loan: JBIC is granting a loan to CAF for the purpose of financing to its clients, by way of Sub-Loans.
Public health efforts include organizing emergency medical facilities and procuring medical equipment and supplies.