At its 61st Board of Governors, CABEI outlines roadmap to achieve AAA credit rating and improve channeling of resources to benefit the region

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The Bank presented record numbers of approvals and disbursements made in 2020.

Tegucigalpa, September 3, 2021.- The Central American Bank for Economic Integration (CABEI) defined strategic actions at the LXI Ordinary Meeting of the Board of Governors of the Central American Bank for Economic Integration (CABEI) to improve its credit rating to AAA in order to access resources under the best financial conditions and pass on the benefits to the countries of the region.

The capital increase will open up space for the incorporation of new partners with high ratings and/or for current partners with such ratings to have the option of subscribing additional amounts, thus improving the costs of raising funds in the capital markets and increasing the number of credit approvals with better interest rates and longer terms for our countries.

The Assembly was opened by the President of Honduras, Juan Orlando Hernández, and was attended by leaders of the region's financial sector. CABEI's Executive President, Dr. Dante Mossi, stated that the institution is at its best moment: "Despite the fact that we continue to face adverse situations, we are confident that as Central America's main development bank, we are ready to continue promoting solutions that benefit Central Americans, as evidenced by the initiatives approved in 2020, which are expected to impact 34 million people.

The event also highlighted the successful implementation of last year's eighth capital increase from US$5,000.0 million to US$7,000.0 million, consolidating CABEI's AA international credit rating and stable outlook. This milestone positioned CABEI as the first Multilateral Development Bank (MDB) to implement a capitalization process in the context of the economic and health crisis related to COVID-19.

Mossi emphasized that CABEI is consolidating its expansion strategy in markets such as Asia, Europe and South America, and is also involved in innovative projects such as the bio-park for vaccine manufacturing, the KOR CABEI private equity fund, the regional public debt market, the issuance of securities with member governments in Mexico's capital market, and the introduction of financing for public, private hybrid and electric transportation, among others.

Soundness with tangible results

Within the framework of the Assembly of Governors, the progress in the execution of the 2020-2024 Institutional Strategy was also analyzed, with an availability of more than US$15 billion for the benefit of the region, which includes projects for modern hospitals, roads, railroads, ports, airports, dams, natural gas plants, electric mobility, schools, water and sanitation, among others.

The Bank's financial strength, as well as its commitment to Central Americans, allowed it in 2020 to be the first MDB to design a US$3 billion Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation, which included the new Development Policy Operations modality, a line of support for Micro, Small and Medium-Sized Enterprises, and the expansion of the credit line program to Central Banks, among other actions.

In addition, develop the Central American Resilient Reconstruction Program for up to US$2.513 billion for the reconstruction of roads and social housing, as well as the prevention and mitigation of natural disasters.

"By the end of 2021 and my three years at the head of CABEI, we will have delivered 68 projects and technical cooperation, of which 12 are in road infrastructure, 6 in energy and 4 in water and sanitation, which highlights the importance of our institution in improving the region's competitiveness, and the socioeconomic conditions of the population, as well as attracting foreign investment fulfilling our commitment to be the bridge of opportunities between the region and the world."

He concluded that by the end of 2022, a total of 89 projects and technical cooperation projects aimed at the economic and social development of CABEI member countries will be tangible, valued at close to US$3.4 billion.