CABEI demonstrates its financial soundness by remaining the leader in channeling resources to the region
• During the past year, the multilateral development institution strengthened its equity through various capital contributions made in advance by its member countries, as well as through the sustained generation of profits.
Punta Cana, May 10th, 2023.- The Central American Bank for Economic Integration (CABEI), founded 63 years ago by the countries of the region with the purpose of having its own source of resources with the capacity to meet their investment needs to improve the quality of life of their inhabitants, became their main financial arm several years ago.
A condition it maintains thanks to its solidity, ratified last year with the best credit rating in Latin America "AA", by recognized agencies such as Standard & Poor's (S&P), Moody's Investors Service and Japan Credit Rating Agency (JCR), who valued the considerable capital reserves required by its shareholders; as well as the application of a set of financial policies that promoted a robust liquidity position, a very strong level of capital adequacy, stable profitability levels and the diversification of its financing sources.
Something that is internationally recognized and that facilitated the raising of competitive resources through the execution, in 2022, of fifteen transactions in the capital markets of Australia, Switzerland, China (Taiwan), Japan, Mexico, and others, for an aggregate amount of US$1.259.8 billion, of which 64% corresponded to environmental, social and governance (ESG) bond issuances.
"We continue to show very positive results, the Bank is preparing to attend to a future in which the only certainty is that our region will continue to need the unequivocal support of an ally that will attend to it as a priority and with the best financial conditions, for the benefit of all its inhabitants," stated CABEI Executive President, Dr. Dante Mossi.
The region's preferred creditor
CABEI's financial soundness was also supported in 2022 by its member countries, with capital payments totaling US$88.5 million in cash payments; and access to US$4.29 billion in aggregate approvals during the same period, in addition to disbursements of US$2.163.9 billion to finance energy, road, rail transport, health and security projects. This represents a total project portfolio of approximately US$9.254.9 billion.
Figures that the region's most important multilateral institution expects to increase by 2023, with approvals in the order of US$3.3 billion, which can undoubtedly improve its credit conditions by increasing its capital, enabling it to open up space for the incorporation of new highly rated members, improve the costs of raising funds in the capital markets, broaden its offer, and favor its member countries with better terms and interest rates.