DistantNews
Support us
CAF to Expand Private Financing Arm into Paraguay and Peru
🇵🇾 Paraguay /Economy & Trade

CAF to Expand Private Financing Arm into Paraguay and Peru

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • The Development Bank of Latin America and the Caribbean (CAF) will expand its private financing arm, CAF Asset Management (CAF-AM), into Paraguay and Peru.
  • This expansion aims to attract more private capital for strategic infrastructure projects, complementing CAF's traditional sovereign loans.
  • CAF-AM has already seen success in Uruguay and Colombia, with plans to enter three new markets.

The Development Bank of Latin America and the Caribbean (CAF) is set to expand its specialized infrastructure investment fund management subsidiary, CAF Asset Management Corp. (CAF-AM), into Paraguay and Peru. This strategic move aims to broaden private financing mechanisms for key projects, supplementing the sovereign loans CAF traditionally provides.

Alejandra Botero, CAF's Manager of Investment and Financial Development, announced that the capitalization of CAF-AM will be presented to the board for approval. This step follows positive results achieved in Uruguay and Colombia, where CAF-AM currently manages four and two funds, respectively. The expansion into Paraguay and Peru, with a third country yet to be confirmed, signifies CAF's commitment to diversifying funding sources for regional development.

While approximately 85% of CAF's portfolio consists of sovereign operations, loans to governments for public works and fiscal support, the remaining 15% is directed towards non-sovereign operations, including private sector financing. CAF offers various financial instruments for this segment, such as corporate loans, structured financing for public-private partnerships, credit lines for development banks, and investments in specialized funds. Botero emphasized that CAF provides a comprehensive portfolio of products tailored to meet diverse needs.

Se está pasando a Directorio la capitalización de CAF-AM para poder expandirlo a tres países más, dada la experiencia tan positiva en Uruguay y Colombia

— Alejandra BoteroExplaining the plan to expand CAF-AM to new markets based on successful past experiences.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog