Korea and IDB Group Renew and Expand Co-financing Facility by $500M
BARRANQUILLA, Colombia - The Government of Korea and the IDB Group have agreed to renew and expand the Korea Infrastructure Development Co-financing Facility for Latin America and the Caribbean (KIF) for an additional $500 million, its largest replenishment in the last 5 years. The expansion of the KIF will enable the Inter-American Development Bank (IDB) and IDB Invest to finance critical development needs for the region in the areas of infrastructure, energy, health and technology, among others.
In the context of the IDB’s Annual Meeting, 1st Vice Minister of Economy and Finance of Korea, Kim Yongbeom, IDB President Mauricio Claver-Carone and IDB Invest CEO James Scriven, signed a Letter of Intent to formally expand the scope of their collaboration in support of the Facility, and to explore the possibility of entering into a separate agreement for a facility with the purpose of co-financing non-sovereign guaranteed operations with IDB Invest.
“The expansion of the Korea Infrastructure Development Co-financing Facility marks a new period of stronger collaboration between Korea and the IDB Group, as well as between Korea and the Latin American and Caribbean region more broadly” said IDB President Mauricio Claver-Carone, “Korea’s support comes at a critical time for the region and will be key in accelerating its post-pandemic recovery. We hope to continue actively finding investment opportunities to close the region’s financing gaps in alignment with Korea’s and the IDB´s priority sectors” he added.
The Korean 1st Vice Minister said, “Korea and the IDB Group have formulated a successful partnership through this facility thus far.” He also added “Based on the cooperative framework which will be further solidified by signing of the Letter of Intent today, I hope that we will be able to explore many more projects where Korea and the IDB Group can create synergies, including in areas such as ICT, energy, and healthcare, under a pressing need for infrastructure in the LAC region to overcome the COVID-19 crisis.”
The IDB Group and the Korean Ministry of Economy and Finance (MoEF) structured the first phase of KIF for US$100M in 2015 and then renewed it for another US$300M in 2017. The Facility, funded by the MoEF and managed by the Export-Import Bank of Korea (KEXIM), has successfully served as the primary platform for co-financing between the IDB and Korea. As of 2021, US$365M have already been effectively allocated to 10 IDB co-financed projects.
The expansion of the Facility builds on years of successful collaboration between the parties through the Korea-LAC business summits that have helped strengthen commercial and investment ties between Korea and LAC, the Korean Trust Funds, and knowledge sharing programs.
About the IDB Group
The IDB Group is the leading source of development finance for Latin America and the Caribbean. It helps to improve lives by providing financial solutions and development expertise to public- and private-sector clients. The Group comprises the IDB, which has worked with governments for 60 years; IDB Invest, which serves the private sector; and IDB Lab, which tests innovative ways to enable more inclusive growth.
About the Government of Korea
Korea joined the IDB in 2005 as the Bank’s 47th member. The Asian nation has financed a variety of IDB initiatives since then, including poverty alleviation programs, the development of small- and medium-sized enterprises in Latin America and the Caribbean, and knowledge sharing programs, among others.