CABEI strengthens its equity and financial soundness

Santo Domingo, October 21, 2016. - The Dominican Republic increased its equity interest in the Central American Bank for Economic Integration (CABEI), which will enable it to have greater access to project financing to support its economic and social development.

The capital increase strengthens the Dominican Republic’s position as a regional non-founding CABEI member country, following the decision of Dominican authorities to acquire 19,740 shares; this increases the country’s participation in the Institution by US$197.4 million, reaching a total subscription of US$256.0 million. It represents a favorable response to the amendments made to the Bank’s Constitutive Agreement.

The share subscription agreement will generate new cash capital contributions for CABEI amounting to US$49.1 million, which will be received over the course of four years.

The agreement, which formalizes the purchase of the shares, was signed by the Dominican Republic’s Minister of Finance, Mr. Donald Guerrero, and CABEI Executive President Dr. Nick Rischbieth.

President Rischbieth noted that the Dominican Republic’s capitalization will foster regional integration. In addition, he emphasized the fact that the country has included CABEI as part of its National Development Strategy, which in line with the Bank’s goal of diversifying its external funding sources.

Dr. Rischbieth also noted that CABEI has financed significant infrastructure and renewable energy projects in the Dominican Republic, including the Palomino Hydroelectric Project, the Coral Highway and the Improvement and Expansion of the Eastern Road Corridor. In addition, the Bank is expected to increase its participation in financing new projects that generate a positive impact on the country’s development.

This operation reaffirms CABEI’s commitment as a multilateral financial institution to supporting its member countries to carry out innovative operations in favor of regional development.