Dominican Republic Senate approves capital increase at CABEI

02/12/2021

Tegucigalpa, December 02, 2021.- On Wednesday, the Dominican Republic's Senate approved the Share Subscription Agreement for a Capital Increase between the Dominican Republic and the Central American Bank for Economic Integration (CABEI).

The increase corresponds to a total of 12,240 additional Series "B" shares, equivalent to US$122.4 million of subscribed capital, comprised of US$91.8 million of callable capital and US$30.6 million of capital payable in cash, bringing the Dominican Republic's subscribed capital to US$378.4 million, equivalent to a 5% participation in the Bank's capital.

In this regard, CABEI Executive President, Dr. Dante Mossi, stated on his Twitter account, "Congratulations to #RepublicaDominicana for making this @CABEI_Org their own, very grateful for the trust placed in the most solid financial institution in Latin America".

He also emphasized that "this subscription demonstrates the Dominican Republic's unquestionable support for the Bank, making it the Regional Non-Founding Member with the largest participation and contributing to consolidate CABEI as the cornerstone of development in the Central American region.”

This initiative enables the member country with a quota of around US$1,000.0 million and highlighted its key role for CABEI as it is a "gateway" for Central America's entry into the Caribbean, explained Mossi.

In 2020, CABEI officially increased its authorized capital from US$5,000.0 million to US$7,000.0 million. This was the Bank's VIII General Capital Increase; the second in less than ten (10) years, which confirms the high value of the CABEI franchise and the support of its members, as well as its relevance for the region as the main channeler of financial resources, disbursing more than US$30 billion since its founding in 1960.

In the Dominican Republic, CABEI is currently financing initiatives to modernize the port of Haina, a project to contribute to the development of the agricultural sector and initiatives to improve road mobility, such as financial assistance for the Coral Highway project and the expansion of the Eastern Road Corridor. Also noteworthy is the recent formalization of the US$350 million Development Policy Operations Program (DPO) for the benefit of 10.5 million inhabitants, whose rapidly disbursed resources will support the country's economic recovery through the generation of jobs, the promotion of sustainable development, and the fight against climate change through the reform of the energy sector.

In addition, CABEI has credit lines open to support the private sector, especially small and medium industrial entrepreneurs, which it channels through Banco Popular, Banreservas and, recently, the Development and Export Bank (Bandex).

The capitalization of its member countries strengthens the Institution's position as the best credit in Latin America, as reflected in the risk ratings granted by the different international agencies: Standard & Poor's with a rating of AA, Moody's with a rating of Aa3, and Japan Credit Rating with AA, which in turn confirms the Institution's financial strength backed by the application of conservative financial policies.

 

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