The Inter-American Development Bank (IDB) and the government of Canada signed a landmark $200 million guarantee agreement to support up to $1 billion in new financing for projects in critical-mineral value chains and resilient infrastructure across Latin America and the Caribbean.

The agreement, signed in Guatemala City by IDB Group President Ilan Goldfajn and Canada’s Secretary of State (International Development) Randeep Sarai, will enable the IDB to expand its lending capacity while preserving its financial strength and strong credit-risk rating. 

The guarantee will be anchored in two key areas for Latin America and the Caribbean: 

• Critical minerals: The guarantee will bolster IDB LAC Minerals, a regional initiative to strengthen value chains in critical minerals. It will support projects that expand processing capacity and develop the infrastructure needed to add value to the supply chain through responsible mining, as well as connect Latin America and the Caribbean to global markets. 
• Resilient infrastructure: The guarantee is also aligned with the IDB Group’s Ready and Resilient Americas initiative, which helps countries prepare for and recover from natural disasters. It will support investments in resilient transport, energy, water, and digital infrastructure that keep essential services operating during shocks. 

“This guarantee will support up to $1 billion in additional financing for projects that strengthen economic resilience — roads, ports, electricity, and water systems that can better withstand disasters — and strengthen critical-mineral value chains,” said Goldfajn. “By using our balance sheet more effectively, we can deliver more for our member countries. Canada is a valued and longstanding partner, and this agreement reflects our shared commitment to growth across the region.”

“Canada and IDB have been steadfast partners for over 6 decades,” said Sarai. “Today, we are reinforcing that partnership by jointly signing a guarantee agreement to unlock sustainable development across Latin America and the Caribbean. Together, we are investing in the future of the region by supporting economic growth through strengthening critical minerals value chains and building climate-resilient infrastructure to help secure a more stable and prosperous world.’’ 

The guarantee covers a portion of the IDB’s sovereign-guaranteed exposure portfolio, allowing the Bank to optimise its balance sheet and expand lending capacity without requiring additional shareholder capital. The additional financing will support solely IDB projects in critical minerals and resilient infrastructure that meet the Bank’s environmental, social, integrity, and fiduciary standards.