The Japan Bank for International Cooperation – JBIC (Bank of International Cooperation of Japan), granted a new credit line for USD 200 million to CAF -development bank of Latin America- to promote investments in quality infrastructure for the preservation of the environment and sustainable growth of the region, called QI-ESG (for its acronym in English) under the JBIC’s Growth Investment Facility.
Projects in Latin America with a climate focus, which are in sectors such as renewable energy, energy efficiency, electric mobility and sustainable transport, water supply or prevention of water pollution, among others, may be part of this line of credit.
In the last 10 years, this is the third line of credit signed by JBIC and CAF for a total of USD 600 million, aimed at supporting green projects. The first agreement was signed in 2011 for an amount of USD 300 million and the second agreement was signed in 2016 for an amount of USD 100 million. These resources have been used to finance large-scale projects for the region for renewable energy and sustainable transport projects in Brazil, Chile, Ecuador, Mexico and Peru
For this new line of credit, projects have already been jointly identified in Ecuador, Panama, Paraguay and Peru in the different sectors mentioned. The impact of this type of credit lines at the sustainability level for the region is relevant since they seek to finance projects that are well structured and comply with the best environmental and social standards, in order to make them more viable. With this line of credit, CAF is catalysing resources from Japanese financing sources (JBIC invited other six Japanese banks (Mizuho Bank, Ltd., The Joyo Bank, Ltd., The bank of Yokohama, Ltd., The Hachijuni Bank, Ltd., The Bank of Saga, Ltd. and The Gunma Bank, Ltd.) to contribute resources to the line of credit) for the benefit of the region due to its good financial conditions.
The relationship between JBIC and CAF begins in 1975 and since then cooperation has been deepening and focusing on supporting the sustainable development of Latin American countries.
Original source: CAF
Published on 23 March 2020