CABEI strengthens equity with capital increase


Both the Republic of Panama and Dominican Republic increased their capital to US255 million, improving their capacity to receive funding from CABEI.

Tegucigalpa, Honduras, February 22, 2016 - The Board of Governors of the Central American Bank for Economic Integration (CABEI) approved an increase in share participation for the Republic of Panama and Dominican Republic reaching a total subscription of US$255 million each country.

The Republic of Panama and Dominican Republic decided to increase its participation within the Bank's share, through a capital subscription process that will generate new cash payments for CABEI. This is the Bank's second capitalization process in the last four years; in 2012 an increase to the Bank's Ordinary Capital from US$2.0 billion to US$5.0 billion went into effect.

CABEI Executive President, Dr. Nick Rischbieth stated that Panama and Dominican Republic's capitalization represents a positive step on the path to regional integration, highlighting the fact that both countries have identified CABEI as the best option for funding their development projects. On that note, he stated that the Bank expects to increase its participation in funding new projects that have a positive impact in the development of both countries.

Furthermore, President Rischbieth indicated that this capitalization positions the Institution as one of the best credits in Latin America, as reflected in its high investment grade credit ratings from credit rating agencies (AA- from Japan Credit Rating, A1 from Moody's and A from Standard & Poor's and Fitch Ratings), which confirm the Bank's financial soundness, backed by the application of conservative financial policies.

The Bank promotes the region's development and continues to consolidate its position as the most important multilateral source of financial resources for the countries of the Central American Integration System. CABEI seeks to strengthen its position as a strategic ally for its member countries in providing financial solutions that contribute to generating employment and to improving the wellbeing and quality of life of Central Americans.