The Japan Bank for International Cooperation (JBIC) has agreed to provide a credit line of up to US$100 million to Corporacion Andina de Fomento (CAF), the development bank of Latin America and the Caribbean, to support environmental initiatives in the region.

The loan, of which JBIC will contribute US$50 million, will be co-financed with Sumitomo Mitsui Banking Corporation (lead arranger) and Joyo Bank, based in Mito, Ibaraki Prefecture. JBIC will also provide a guarantee for the co-financed portion.

This fourth credit line follows previous successful collaborations between JBIC and CAF in 2011, 2016, and 2020. Through this initiative, CAF and JBIC would be mobilizing US$700 million to the region to support sectors such as renewable energy, energy efficiency, sustainable transportation, and water and sanitation.

The transaction is part of the JBIC’s "Global action for Reconciling Economic growth and ENvironmental preservation" (GREEN) programme.

CAF is committed to allocating US$25 billion to green finance from 2022 to 2026.