The ICO and the CAF have launched a credit line of 200 million dollars to boost the development of sustainable projects in Latin America
Chairman of the Official Credit Institute (ICO), José Carlos García de Quevedo, and Executive President of the CAF (Development Bank of Latin America), Luis Carranza, have ratified the implementation of the new Credit Line, announced during the COP25, of the amount of $200 million dollars for financing projects of Spanish interest within the framework of the ICO International Channel.
At a meeting in Madrid, the heads of both organisations highlighted the relationship that the ICO and CAF have maintained for over 20 years, collaborating and exchanging knowledge and resources to promote sustainable development in Latin America.
The funds that the ICO has made available to the CAF, with the signing of the latest transaction, will be used to fund and promote the activity and projects of Latin American companies with a Spanish interest, with special attention paid to sustainable or green projects. To do this, the CAF, directly or through collaborating financial institutions in different Latin American countries, channels resources, thus broadening the ICO International Channel's geographical scope.
Thanks to the collaboration of entities such as the CAF, the International Channel Line offers Spanish companies with activity in third markets the possibility to finance their projects in the local currency of the countries where they carry out investment projects or export activity. This will facilitate the application procedures and incorporate knowledge of the local market by the entity as added value.
Since the launch of the International Channel, the ICO and the CAF have signed three agreements, amounting to 630 million dollars. Both institutions share the common goal of promoting business development between Spain and Latin America and promoting the internationalisation of Spanish companies. They also share the same model of funding that prioritises the environmental and sustainable development of selected projects to contribute to the protection of the environment and combating climate change.
Within the framework of its strategy for boosting the internationalisation of Spanish companies, the ICO has carried out intensive work in funding flagship projects in Latin America with the participation of Spanish companies. Over the past three years the ICO has formalised over 4,000 operations related to Latin America, of a total value of 2,500 million euros.
About the ICO:
The Official Credit Institute (Instituto de Crédito Oficial - ICO) is a public business entity attached to the Spanish Government¿s Ministry of Economy and Business. ICO has become a benchmark in the financing of both SMEs and large investment projects. The ICO contributes to inclusive and sustainable growth, promoting those economic activities that, due to their social, cultural, innovative or ecological importance, deserve promotion and development.
About the CAF:
The Development Bank of Latin America (Banco de Desarrollo de América Latina - CAF) aims to promote sustainable development and regional integration, through financing projects in both the public and private sectors, providing technical cooperation and other specialised services. Formed in 1970 and now consisting of 19 countries (17 in Latin America and the Caribbean, along with Spain and Portugal) and 13 private banks, the CAF is one of the main sources of multilateral financing and an important generator of knowledge for the region.