ICO grants 300-million dollar loan to CAF-Development Bank of Latin America to boost internationalisation of Spanish companies

This is the first loan granted under the new ICO financing programme to international banking. Under this operation, the ICO grants CAF funding to be allocated to companies with Spanish interests in Latin America. CAF will channel these resources, in turn, through financial institutions in different countries in Latin America that collaborate with this multilateral institution.

The loans that are formalised with companies with Spanish interests that are allocated to investments or liquidity requirements will have a maximum sum of 12.5 million euros, while those allocated to exportation may reach a maximum sum of 25 million euros or the equivalent in the corresponding currency. Repayment terms and grace periods will be agreed between the local financial institution that collaborates with CAF and the beneficiary company with Spanish interests.

The Chairwoman of the ICO, Emma Navarro, declared at the signing ceremony that "this new financing plan will allow the ICO to continue supporting the expansion of Spanish companies overseas, a strategic pillar in our activity, in line with the structural change that internationalisation has brought to our economy".

For his part, the European Director of CAF, Guillermo Fernández de Soto, declared that "Spain is a key country in the region, among other reasons, due to the strength of its companies and their experience in high interest sectors for economic and sustainable development in those countries in which CAF operates. Furthermore, Latin America is a key region for the Spanish business fabric where it generates a significant part of its profits. For that reason, the ICO has today activated a credit line of 300 million dollars so that CAF, through its regional banking institutions, can finance Spanish companies which have at least 30% Spanish capital and that seek to undertake investment projects in Latin America and the Caribbean".

The presence of Spanish companies in Latin America promotes competitiveness and productivity thanks to improved quality standards and the exchange of knowledge and experiences that are generated by the inclusion of significant global companies operating at a local level.

Due to the efforts made in recent years, the international credit activity of the ICO has significantly increased, from representing just 2% in 2012 to more than 35% in 2015.

ICO-CAF collaboration

ICO and CAF have been collaborating since 1998 through various agreements with the aim of boosting business relations between Spain and Latin America to foster the internationalisation of Spanish companies.

About ICO

The Official Credit Institute (ICO) is a public bank with the legal status of a public business institution under the umbrella of the Ministry of Economic Affairs and Competition. It is legally incorporated as a credit institution and is established as a State Finance Agency. As a public bank, the ICO grants loans and holdings in capital to finance the investment and liquidity operations of companies, both within Spain and overseas, whether through the mediation of financial institutions or through direct funding. Furthermore, as a State Finance Agency, the ICO manages official finance instruments which the Spanish State offers to promote exports and development aid.

About CAF

The mission of CAF-Development Bank of Latin America is to boost sustainable development and regional integration through the financing of projects in both the public and private sectors, the provision of technical cooperation and other specialised services. Set up in 1970 and currently comprised of 19 member countries - 17 in Latin America and the Caribbean, together with Spain and Portugal - and 14 private banks, it is one of the main sources of multilateral financing and a major generator of knowledge in the region.