Summary of operations
Road Infrastructure: Financing for 148 kilometers of highways.
Energy: Financing for the generation of 80 megawatts of clean renewable energy.
Agro Sector: US$ 60 million for the strengthening of the agricultural sector with a sustainable technological approach.
A 228% increase in the amount estimated in the 2021-2026 country strategy, reaching US$ 1.8 billion. In the previous five-year period the disbursement amounted US$ 533.9 million.
PROJECTS
Coral Highway Project
It consisted of the construction of a 70-kilometer-long, 4-lane highway, for which financing of US$70.0 million was allocated.
Improvement and Expansion of the Eastern Road Corridor for road sections
San Pedro de Macorís-La Romana Section, La Romana Beltway Section and Eastern Tourist Boulevard Section, totaling 78 kilometers in length and representing the best road infrastructure in the country.
Palomino Hydroelectric Project
With a clean and renewable energy generation capacity of 80 megawatts, it is located in the Province of San Juan. For its execution, the Bank allocated financing for a total amount of US$ 130.0 million
Construction of a 50-kilometer gas pipeline in San Pedro de Macorís
Loan in favor of AES Dominicana for a total amount of US$54.00 million.
Montegrande Multipurpose Dam Project Phase III
With current financing of US$249.6 million
CABEI re-taps Japanese market and issues Second Covid19 Vaccine Bond
CABEI issues its second Covid 19 Vaccine Bond in Japan, in New Zealand Dollars amounting to US$ 50.1 M
Tegucigalpa, December 07, 2020.- The Central American Bank for Economic Integration (CABEI) issues a Covid 19 Vaccine bond, this second time with the participation of Japanese regional investors. The note was issued in New Zealand Dollars for a total amount of NZD 72 million an equivalent amount of US$ 50.1 million with a 5-year tenor. The proceeds of the issuance will support the efforts of the Central American countries for the acquisitions of a COVID-19 Vaccine once available in the market, benefiting the population of its Central American Country Members.
CABEI`s financial innovation permitted the institution to become the first ever MDB to issue a COVID-19 Vaccine Bond, with a US$50 million, 5-year tenor private placement issuance in November. With this new issuance in December, CABEI`s total outcome of US$100 million in vaccine bond issuances will provide most needed medical treatments to the Central American population.
As a result of bilateral conversations with the Pan-American Health Organization (PAHO), PAHO will serve as the purchasing agent once an approved vaccine is out in market, proving further reassurance that beneficiary countries will be receiving the medical supplies.
Local governments in the Central American region, have begun planning the acquisition of COVID19 vaccines. The Government of Guatemala plans to obtain 3.3 million vaccines by march as a first step, specifically aiming to purchase the vaccine developed by AztraZeneca due to its less complex transportation requirements (-20c to -70c degrees) once approved by the COVAX mechanism, the Salvadorian government on the other hand has reached an agreement with the pharmaceutical AztraZeneca for the supply of 2 million vaccines by the first quarter of 2021, the Honduran Government in turn has been incorporated into GAVI (The Global Alliance for Vaccines and Immunizations) as an initiative to obtain the necessary medical treatment from AztraZeneca were it will provide initially 1.4 million vaccines to the targeted population.
The Ministry of Public Health of Dominican Republic has confirmed the purchase of 10 million Vaccines, with AztraZeneca Pharmaceutical for an estimated value of US$40 million, in this first purchase, these vaccines will be directed to the front line personal (MDs, nurses, paramedics, police officers, people 65 or older, etc).
The Costa Rican Government has plans to receive 1 Million vaccines supplied by AztraZeneca, and also has agreements with Pfizer and BioNTech for 3 million Vaccines in total these vaccines will be received in the first quarter of 2021, guaranteeing supplies for 2.5 million people.
CABEI’s Executive President, Dr. Dante Mossi, stated “With this second Vaccine Bond issuance the Bank reaffirms its commitment to find the necessary resources in order to fulfil its duty toward the Central American region, and secure safe harbor for the acquisition of COVID19 vaccines. We have already received intention letters from The Honduran Government and Salvadorian Government to obtain US$50 million each in financing resources for the purchase of Covid19 vaccines”. In addition, Dr. Mossi also confirmed that CABEI will continue to support the region in every possible way amidst the pandemic, through the various components of the institution’s COVID-19 Emergency Program for up to USD2.36bn
Currently, CABEI’s credit ratings in an international scale are: Standard & Poor’s with a rating of AA (stable outlook), Moody’s with Aa3 (stable outlook) and Japan Credit Rating (JCR) with AA (stable outlook), reaffirming the Bank’s financial strength.
