Banco de Desarrollo de América Latina y el Caribe (CAF)
Last updated on 03 Mar 2024

Key facts


Owned by 19 countries and 13 private regional banks, the Corporación Andina de Fomento (CAF) provides financing for sustainable development and regional integration through the efficient mobilization of resources.

Avenida Luis Roche
Caracas 1060, Miranda
Venezuela

+58 (212) 209-2111

caf.com
PUBLIC
1970
Credit rating (Fitch)
AA-
Foreign currency

Authorizations and exposure


FY 2022 authorizations top sectors

Sovereign risk
66%
Non-sovereign risk
34%

FY 2022 authorizations

Americas

100 %

Products


  • CAF’s equity investments can be made in various forms:
    • Through investment funds aimed at the acquisition, possession, management, and sale of fixed or variable income securities of companies or infrastructure projects represented in shares or participation certificates issued by those companies
    • Directly through corporate capital to support the production of goods or the delivery of service
    • Through quasi-capital investments, such as subordinate loans, preferred shares, and loans with an option to be converted into shares
  • Basic criteria considered by CAF when deciding equity participation:
    • External resource mobilization achieved as a result of investment
    • Impact on regional development
    • Strategic nature of the investment
    • Output mechanisms
  • Short-term (1 year), medium-term (1–5 years), and long-term (over 5 years) credit lines are available
  • CAF can also act as a second-tier bank, providing credit lines to DFIs, private commercial banks, or qualified companies in the productive sectors of the region, so that they can offer funding to specific groups, such as SMEs
  • CAF provides financial advisory services to clients in the private, public, or mixed sectors
  • CAF can define and structure financing plans for projects or companies
  • Can assist the public sector in the design and implementation of public bidding processes for construction, operation, and management of infrastructure or public services (e.g., public-private partnerships, concessions, etc.)
  • Assist the private sector in preparing bids to take part in said public bidding processes
  • Assist in mergers and acquisitions
  • Appraise companies
  • Structured and project finance
  • Guarantees and collaterals
  • Partial guarantees
  • Treasury services
    • Checking accounts
    • Time deposits
    • Funds management
    • Support clients in the acquisition of commercial paper or notes issued by CAF in the international market

Policies


  • Sovereign financings:
    • Must be of high priority to respective governments
    • Are technically, environmentally, economic, financially, legally, and socially viable
    • Have a developmental impact
  • Non sovereign financings:
    • Borrower must be creditworthy
    • Are technically, environmentally, economic, financially, legally, and socially viable and profitable
    • Have a developmental impact
  • CAF generally does not take currency risk
  • All CAF additional due diligence costs are paid by borrowers

News


  • 2024: CAF issues largest bond in in the European market for EUR 1.5 billion
  • 2024: CAF carries out its first bond issuance in 2024 for USD 1.75 billion
  • 2024: CAF, FinDev Canada and IDB Invest launch private climate action fund
  • 2023: UN Habitat joins the CAF biodivercities network
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