Mexico has been a non-regional CABEI member since 1992 with an authorized stake of USD306.25 million in the Bank's share capital and capital contributions of USD76.56 million, ranking as the third largest shareholder within the group of non-regional members with 5.03%.
The contribution that Mexico channels to the Central American region through CABEI is based on various financial cooperation instruments with Banco Nacional de Comercio Exterior S.N.C. (Bancomext) for a total amount of USD520.8 million. The relationship between the Bank and this country was solidified in 2008 with the launching of the Central American Social Housing Development Program. It falls under the framework of the Mesoamerican Integration and Development Project (formerly Plan Puebla Panamá). Since that date, the Mexican government has made resources available to develop a sustainable market for long-term housing finance in the Central American region that addresses the housing deficit and future needs in this area. Throughout the Program's existence, 59 disbursements have been made through 14 intermediary institutions. In total, 192.7% of the initial financing available has been channeled, benefiting a total of 8,032 low- income households, which can now enjoy a more dignified home.
CABEI continues to expand its Local Currency Financial Intermediation Program
Funding in Honduras under the Local Currency Financial Intermediation Program exceeds 1.00 billion lempiras.
Tegucigalpa, July 31, 2019.- Under the framework of its Financial Strategy, the Central American Bank for Economic Integration (CABEI) continues to boost its Local Currency Financial Intermediation Program, offering diversification opportunities to local investors through a new category of assets, taking into account the high exposure that they maintain to the sovereign and to the domestic financial system.
In that line and throughout 2019, CABEI has acquired fundraising from Public Social Welfare Institutes and Private Financial Institutions in Honduras for an aggregate amount that exceeds 1.00 billion lempiras, strengthening the Bank's impact on development by means of initiatives such as the Micro, Small and Medium Enterprise (MSME) Support Program, the Municipal Infrastructure Financing Program and the Financial System Liquidity and Expansion Program, among others.
In that regard, CABEI Executive President, Dr. Dante Mossi, commented that, “By means of local currency financing, CABEI reaffirms its commitment to promote financial solutions to mitigate borrowers' exchange risk and to channel resources to boost sustainable economic growth and regional competitiveness; this is consistent with the current trends of global multilateral banking.”
On the other hand, Dr. Mossi announced the possibility of a new bond issue by CABEI in the Honduran stock market in order to streamline the development and depth of said market and to provide long-term investment alternatives.
As an international multilateral development institution, CABEI represents a high credit quality option for investors in the Central American region, taking into account its local “AAA” rating in all the countries of the region and its international “AA-” rating, making it the best credit risk in Latin America.
