The Corporación Interamericana para el Financiamiento de Infraestructura (CIFI) was to benefit from Canada’s bilateral development finance institution, FinDev Canada, which announced a USD 30 million loan to CIFI. CIFI is considered a leading investment platform in middle-market infrastructure & energy. It also delivers financial solutions across Latin America & the Caribbean. This is FinDev Canada’s second transaction with CIFI.
This loan is expected to enable CIFI to expand access to financing for private sector infrastructure projects. This Official Development Assistance (ODA) is meant for eligible nations across the Caribbean & Latin America. This transaction is expected to help address the approximate USD 2 billion investment gap. That’s across energy, water, sanitation, transportation & telecommunications needed to meet the Sustainable Development Goals in another 4 years by ’30. 59% of this indicated value is forecast for new infrastructure. Mobilizing private capital becomes critical in advancing sustainable economic growth.
Both the Caribbean & Latin America play critical roles in the clean energy transition. This region demonstrates abundant renewable energy potential. Besides its potential, it also plays a strategic role in supporting global supply chains. These are critical to decarbonisation. Meanwhile, this region is severely vulnerable to extreme climate change. This vulnerability comes through intensified & frequent weather events such as floods, droughts, & hurricanes. CIFI is committed to addressing increased events through its ever-growing renewable energy portfolio. These include solar energy, as well as solar-plus-battery energy system storage projects. The region moves with many sustainable development priorities. As such, 70% of the loan proceeds are expected to support climate projects, especially climate mitigation activities.
Gender-inclusive organisations demonstrate enhanced innovation. This benefit is besides employee retention & ability to solve complex challenges that are associated with the energy transition. Strengthening gender equality is another commitment of CIFI. This commitment is across its portfolio & within its workforce. This means directing 30% of the loan proceeds towards 2X-aligned businesses. It would also include enterprises that advance women’s economic participation, besides supporting women’s career development internally, such as providing mentorship programs and training opportunities specifically designed for women in the workforce. FinDev Canada is also exploring ways to integrate gender-focused technical assistance. This would involve integrating gender-focused Technical Assistance into CIFI’s clients who could benefit from FinDev Canada’s loan proceeds.
