The Central American Bank for Economic Integration (CABEI) and the Financial Fund for the Development of the River Plate Basin signed an Exposure Exchange Agreement worth up to $468 million, marking the first such deal between two multilateral development banks rated “AA” and “A,” CABEI announced. The agreement is CABEI’s third of its kind in less than a year and aligns with balance-optimization measures outlined in the bank’s 2025-2029 financial strategy. It also represents another step in South-South cooperation between the two subregional lenders.
The deal brings CABEI’s total volume of exposure exchange operations to $1.618 billion, helping the bank diversify its portfolio and shore up its capital position. That stronger financial footing has caught the attention of credit rating agencies, which have issued four positive rating actions in less than a year—including S&P Global Ratings’ recent upgrade of CABEI from “AA” to “AA+.” The moves reflect what the bank calls prudent and efficient balance sheet management.
The transaction follows recommendations from the G20’s Capital Adequacy Framework, which aims to strengthen the financial soundness of multilateral development banks and generate long-term value for their members. By executing this agreement, CABEI positions itself as a benchmark for these types of deals among institutions with ratings below “AAA,” underscoring its push to promote sustainable development through innovative financial tools like exposure swaps.
CABEI Executive President Gisela Sánchez said the agreement with FONPLATA reflects the bank’s vision of strengthening cooperation among multilateral lenders and leading innovative financial initiatives.
“It also reinforces our long-term commitment to financial sustainability and innovation, as well as the resilience of our operations, which will allow us to maximize positive impact in our member countries,” Sánchez noted.
The deal sets a new precedent for how development banks with strong but non-top-tier ratings can work together, potentially opening the door for similar arrangements across Latin America and beyond.
