With the signing of this Memorandum of Understanding, both institutions are establishing a framework for cooperation to explore innovative financial solutions aimed at promoting climate resilience, biodiversity conservation, access to financing for MSMEs, and sustainable development in the region.

Pradeep Kurukulasuriya, Executive Secretary of UNCDF, and Gisela Sánchez, Executive President of CABEI, signing the Memorandum of Understanding.

The Central American Bank for Economic Integration (CABEI) and the United Nations Capital Development Fund (UNCDF) signed a Memorandum of Understanding (MoU) to strengthen collaboration between the two institutions and innovative financial solutions in the Central American region.

The partnership combines CABEI’s financial capacity and regional expertise with UNCDF’s experience in designing and deploying catalytic finance and risk-sharing instruments, to address financing constrains, mitigate investment risks, and mobilize additional public and private capital toward investments that contribute to sustainable development.

The agreement establishes a non-exclusive framework for collaboration in areas of mutual interest, including financing climate resilience, biodiversity conservation and sustainable private sector development.

Potential areas of cooperation include guarantee and risk-sharing mechanisms, including partial credit guarantees, as well as the development of financing solutions to expand access to finance for MSMEs and mobilize investment in sustainable infrastructure and other high-impact sectors.

“This partnership with UNCDF represents an opportunity to continue strengthening CABEI’s capacity to promote innovative financial solutions for the benefit of the region. UNCDF’s expertise in catalytic instruments, guarantees, blended finance, and capital mobilization complements our mandate to promote the sustainable and inclusive development of our member countries,” said Gisela Sánchez, Executive President of CABEI.

“UNCDF exists to bring capital to the early-stage and last-mile markets where it does not yet flow on its own. This partnership pairs our capacity to absorb early risk, through guarantees and blended finance, with CABEI’s financial strength and regional reach to take what works to scale. Together, we can unlock financing for MSMEs and accelerate investment in climate resilience and biodiversity across Central America,” said Pradeep Kurukulasuriya, Executive Secretary of UNCDF.