ICO and CAF sign a new agreement to offer guarantees to Spanish companies undergoing an internacionalisation process
CAF offers guarantees to Spanish companies participating in international tenders, facilitating the awarding of foreign projects.
This new agreement complements the uncommitted credit facility launched in April 2013 through which CAF loaned ICO 300 million US dollars in order to finance and extend guarantees to Spanish and Latin American companies.
The aim of these agreements is to promote the development of business between Spain and Latin America and encourage the internationalisation of companies in the two regions.
The chairman of ICO, Román Escolano, and the president of CAF - the Latin American development bank - Enrique García, today signed a framework agreement through which CAF will issue the guarantees required of Spanish companies taking part in international tenders in the 18 countries in which CAF is present (in Latin America, the Caribbean and Europe). This will allow the CAF to guarantee operations, through ICO guarantees or counter-guarantees, significantly facilitating the awarding of international projects in the CAF area to Spanish companies.
The agreement is aimed at Spanish companies employing up to 3,000 people, for operations to a maximum value of 20 million US dollars per company for terms of up to 12 years.
The announcement was accompanied by the signing of an addendum to extend the Credit Framework Agreement signed in April 2013 to May 2015, through which CAF loaned ICO 300 million US dollars in order to finance and extend guarantees to Spanish and Latin American companies.
The aim of this agreement was to extend support to Spanish companies who are in the process of expanding their business to Latin America, as well as offering assistance to Latin American companies looking to increase their operations in Spain. This agrement forms a part of the programme announced at the Ibero-American Summit of Heads of State and Government Cumbre held in Cadiz in November 2012.
Through the aforementioned Credit Framework Agreement, CAF makes loans to ICO which in turns loans the money to companies, both through ICO products which require the intermediation of Spanish credit institutions and through direct operations.
From the total of 300 million US dollars, $100 million has already been set aside for loans to Spanish and Latin American companies who have had to finance their productive investments abroad or their imports and exports.
This collaboration between ICO and CAF strengthens credit instruments that promote internacionalisation and especially guarantees for international tenders. The agreement is a clear indication of ICO's commitment to specialisation and the concentration of its efforts to promote business internationalisation in Spain.