The ICO and CAF launch a new credit line of USD 200 million to boost sustainable projects in Latin America and strengthen relations between Spain and the region.
The President of the Official Credit Institute (ICO), Jose Carlos García de Quevedo, and the CAF Executive President – Development Bank of Latin America -, Luis Carranza, have ratified the launch of the new Credit Line, announced during the celebration of the COP25, for an amount of 200 million dollars for the financing of projects of Spanish interest within the framework of the ICO International Canal Line.
In a meeting held in Madrid, both presidents have valued the relationship that the ICO and CAF have maintained for more than 20 years, collaborating and exchanging resources and knowledge to promote sustainable development in Latin America.
The funds that ICO makes available to CAF, with the signing of the latter operation, will be used to finance and promote the activity and projects of companies with Spanish interest in Latin America, with special attention to sustainable or green projects. For this, CAF, directly or through collaborating financial entities in the different countries of Latin America, channels resources, thus allowing the geographic coverage of the ICO Canal Internacional Line to be expanded.
Thanks to the collaboration of entities such as CAF, the International Canal Line offers Spanish companies with activity in third markets the possibility of financing their projects in local currency in the countries where investment projects or export activity are developed. In this way, the application procedures are facilitated and the knowledge of the local market by the entity is added as an added value.
Since the launch of the International Canal Line, the ICO and CAF have signed three agreements, the amount of which already amounts to 630 million dollars. Both institutions share the common objective of promoting business development between Spain and Latin America and favoring the internationalization of Spanish companies, as well as the same financing model that prioritizes the environmental and sustainable nature of the projects selected to contribute to the protection of the environment. environment and the fight against climate change.
Within the framework of its strategy to boost the internationalization of Spanish companies, ICO has developed an intense work in financing emblematic projects in Latin America with the participation of Spanish companies. Over the past three years, the ICO has formalized more than 4,000 operations related to Latin America, for a total value of 2,500 million euros.
Source: CAF Interamerican Development Bank