• The partnership reflects a shared vision to empower the Caribbean’s private sector as a driver of economic development. 

WASHINGTON – IDB Invest and the Caribbean Development Bank (CDB) announced a new strategic partnership to support private sector development in the Caribbean. This renewed collaboration focuses on expanding financing for trade and unlocking new opportunities for businesses across the Caribbean, placing private sector-led growth at the forefront of a shared agenda.

The partnership reflects a shared vision to empower the Caribbean’s private sector as a driver of economic development. By working with financial institutions across the region, the collaboration aims to improve access to finance for small and medium-sized enterprises (SMEs), expanding their opportunities for trade, investment, and long-term development.   

A key highlight of the enhanced partnership is CDB’s new Trade Finance Guarantee Program, a significant milestone in regional financial innovation. As part of a pilot phase, CDB will enter into a Risk Participation Agreement (RPA) with IDB Invest. RPAs enable the sharing of risk associated with loans and other obligations across institutions. These arrangements will further expand the reach and impact of the initiative. 

Trade finance plays a critical role in facilitating both global and regional commerce. In Latin America and the Caribbean, limited access to timely trade finance remains a significant barrier for businesses, particularly SMEs. Trade finance helps reduce financing gaps between trading partners and supports participation in regional and global markets. 

Beyond trade finance, the two institutions are laying the groundwork for joint originations and co-financing of private sector projects across the Caribbean. This will expand the reach of both institutions while fostering a more dynamic and resilient business environment. 

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website idbinvest.org/en.

ABOUT CDB

The Caribbean Development Bank is a multilateral development bank with regional mandate established in 1970 for the purpose of contributing to the harmonious economic growth and development of its Caribbean Borrowing Member Countries (BMCs). In addition to the 19 BMCs, CDB’s membership includes four regional, non-borrowing members (Brazil, Colombia, Mexico, and Venezuela) and five non-regional, non-borrowing members (Canada, China, Germany, Italy and the United Kingdom). CDB’s total assets as at December 31, 2023, stood at US$3.43 billion (bn). These include US$2.03 bn of Ordinary Capital Resources and US$1.40 bn of Special Funds Resources. The Bank is rated Aa1 Stable by Moody’s, AA+ Stable by Standard & Poor’s and AA+ Stable by Fitch Ratings. Read more at caribank.org.