Green and digital transition in Central America
By Guy José Bendaña-Guerrero & Asociados
The Instituto de Crédito Oficial (ICO) and the Banco Centroamericano de Integración Económica (BCIE) signed a new financing agreement for USD150 million to support sustainable and digital projects of companies with Spanish interest located in BCIE's main countries of activity, such as Nicaragua, Guatemala, Honduras, El Salvador and Costa Rica.
This loan is intended to promote competitiveness, productivity, sustainable economic growth and employment generation.
The operation also strengthens the ICO-BCIE institutional alliance, as it is the sixth loan that the ICO has granted to the Central American institution. From 2017 to date, all the agreements reached between the two institutions fall within the framework of the ICO International Channel Facility. These agreements have enabled the financing of 100 projects for a total amount of USD 423.9 million in eight different countries in sectors such as construction, wastewater treatment and financial activities.
The new agreement will make it possible to continue the environmental and sustainable development of companies through the financing of new operations with Spanish interest. Among the green projects to be implemented, several have already been identified in the water and sanitation and construction sectors.
ICO will also provide financial resources for the digitalisation of companies as a vehicle for economic growth. This loan will be present in the life of companies linked to technology and artificial intelligence tools to support the digital transformation of the productive fabric.
This sixth financing agreement between BCIE and ICO reaffirms the continued commitment of both institutions to strengthen economic integration and foster business innovation in the Central American region. The funds are intended to facilitate access to the financial resources necessary for companies to implement more sustainable practices.
The ICO International Channel Facility is aimed at promoting the activity and financing of projects of companies with Spanish interest with international presence in third markets, through intermediation with international financial institutions.
This programme transfers the public-private partnership operating scheme of the ICO Facilities to multilateral, public promotional or private banks located abroad. This facilitates the application process for companies and incorporates the institution's knowledge of the local market as an added value. In addition, it allows Spanish companies and self-employed individuals to undertake their business activities in third markets with the possibility of financing in local currency in the countries where the projects or business activity is carried out.