Madrid, July 17 2018.- CAF-banco de desarrollo de América Latina- and COFIDES signed a memorandum to create the Impact Fund for SMEs (Fondo de Impacto para PYME), which seeks to boost the competitiveness and internationalisation of Latin American SMEs and, at the same time, to contribute to the economic, environmental and social development of this region.
This memorandum, signed during the Board meeting held in Madrid, intends to channel technical resources and assistance in order to provide financial strength and to improve the competitiveness of those SMEs operating in sectors which are considered strategic to the integral development of Latin America. "This memorandum shows CAF´s commitment to promote business ecosystems in Latin America which, on the one hand, contribute to increase the competitiveness and productivity levels and, on the other hand, boost the creation of more and better jobs", said Luis Carranza, CAF´s CEO.
COFIDES´s chairman, Salvador Marín, stressed that "this fund will be very positive for SMEs from Latin America, and also from countries outside this region, which will see their financing possibilities strengthened in order to implement their international projects in those countries". COFIDES´s chairman also stated that "these projects will also create value, new jobs and will have positive and long-lasting effects in the development of the receiving countries, and will also contribute indirectly to the consolidation of their parent companies in the country of origin".
Lastly, he noted that COFIDES is an entity accredited by the EU to manage the community budget. This, COFIDES is authorised to raise capital from the EU to provide technical assistance with the purpose of improving the impact on the development of the Fund´s activities and boosting the productivity and innovation of the served SMEs.
The future Fund will invest in countries of the Latin American region, CAF members and those countries COFIDES is interested in, applying concentration limits and seeking diversification by country, as agreed by the signatories when structuring the Fund.
The Fund will have up to 40 million dollars (15 million contributed by CAF and up to 25 million raised by COFIDES) and it will have a duration of ten years, a period which may be extended for two more years.
The mission of CAF, -banco de desarrollo de América Latina (development bank of Latin America), is boosting the sustainable development and the regional integration by financing projects of the public and private sectors, providing technical cooperation and other specialised services. Established in 1970 and presently comprised by 19 countries -17 Latin American and Caribbean countries, Spain and Portugal- and 13 private banks, CAF is one of the main sources of multilateral financing and an important knowledge builder for the region. More information at www.caf.com
COFIDES is a public-private company which has been offering financial support to Spanish companies investing abroad since 1988. It is the exclusive manager of FIEX and FONPYME funds on behalf of the Secretariat of State for Trade attached to the Ministry of Industry, Trade and Tourism. Shareholders include Banco Bilbao Vizcaya Argentaria (BBVA), Banco Santander, Banco Popular, Banco Sabadell and CAF-Development Bank of Latin America.