A new co-financing framework that furthers IDB Invest and the U.S. International Development Finance Corporation (DFC) collaboration in supporting high-impact development projects in Latin America and the Caribbean (LAC) was launched today.

IDB Invest CEO James Scriven and his DFC counterpart Scott Nathan signed the framework to finance projects in key sectors such as renewable energy, financial inclusion, transportation, infrastructure and the digital economy. This new framework is an extension of the Americas Partnership Platform, which U.S. President Joe Biden announced at the inaugural Americas Partnership for Economic Prosperity Leaders’ Summit.

The framework creates a streamlined process, where IDB Invest and DFC can provide up to US$50 million each to meet the financing needs of strategic deals in Latin America and the Caribbean. The streamlined procedures aim to simplify the due diligence process between the two institutions, providing greater opportunities for IDB Invest and DFC to co-finance deals in countries where financing may be limited.

The programme is available for transactions in all sectors and countries in which DFC and IDB Invest jointly operate. The new framework expands the ways in which IDB Invest and DFC can partner to support economic development in the region under the Americas Partnership Platform.

IDB Invest and DFC are committed to finding new ways of working together to harness private sector resources that promote high-quality investments in Latin America and the Caribbean. This includes joint travel, beginning with a trip to Colombia later this year.

IDB Invest is the private sector arm of the IDB, which finances sustainable companies and projects to achieve financial results and maximise economic, social, and environmental development in the region. With a portfolio of US$21 billion in assets under management and 394 clients in 25 countries.

The DFC is the U.S. Government’s development finance institution, which partners with the private sector to finance solutions to the most critical challenges facing the developing world today.

In hailing the initiative, Scriven remarked: “By partnering with DFC, we are not only driving financing; we are creating impact. To make a real dent in the UN Sustainable Development Goals, we need to scale our impact to support our member countries in Latin America and the Caribbean, especially those that need it the most.”

Nathan added: “IDB Invest is a valued partner in promoting economic development. This new co-financing framework will help both of our organisations more effectively drive investment dollars to high-impact projects across the Americas.”