Improvement in the risk rating of the Republic of China (Taiwan) enhances the financial profile of CABEI

Improvement in the risk rating of the Republic of China (Taiwan) enhances the financial profile of CABEI
Improvement in the risk rating of the Republic of China (Taiwan) enhances the financial profile of CABEI

The Republic of China (Taiwan) is one of CABEI’s first extra-regional allies and its main shareholder. Since its incorporation in 1992, this country has actively supported the Central American region through cooperation and financing in core sectors such as agriculture, food security, education, poverty reduction, infrastructure, health and promotion of SMEs. Their contributions reach a historical accumulated sum of US$238.8 million.

The membership of the Republic of China (Taiwan) strengthened the Bank’s capital structure and promoted the expansion of its shareholder base, serving as a strong reference for other nations to consider joining CABEI. This relationship also allowed the Bank to issue and place bonds for the first time in international markets. At the end of 2023, CABEI has made 25 issues in the Taiwanese capital market, for a total of US$3,169.7 million. This activity places this market in the second most important position for the Bank’s bond issues in the capital markets.

In addition to its financial contribution, the Republic of China (Taiwan) has played a critical role in addressing critical situations in the region. A notable example was the signing of two cooperation contracts with the Bank for a total of US$130 million, in 2020, to confront the COVID-19 pandemic and promote the economic recovery of Central America. This action represented the most significant contribution made by this partner to the region to date.

Another manifestation of this extra-regional member’s commitment to regional growth was the advance payment of the first capital installments associated with its two subscriptions within the framework of the VIII General Capital Increase, for a total of US$8.6 million, made in 2021.

“The active participation of the Republic of China (Taiwan) in CABEI’s capital structure has further strengthened its equity base. Its ability to provide extraordinary support has been a key factor in improving the Bank’s international risk rating, awarded by Standard & Poor’s, which has gone from «AA» to «AA+».”

In 2021, CABEI opened its Representative Office in the Republic of China (Taiwan), marking a milestone for CABEI’s physical presence in Asia.

 
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