The Caribbean’s businesses will soon benefit from a new Risk Sharing Guarantee Facility agreement being jointly spearheaded by FirstCaribbean International Bank and the Inter-American Development Bank (IDB).
Under a new proposed partnership between the two entities, Caribbean businesses will be able to tap into US$200 million in funding geared towards tourism investment and development projects and small infrastructure projects, which will be singled out for their ability to contribute to and further economic growth in the region.
The programme which is being piloted initially in Jamaica, will allow FirstCaribbean, a leading player in the funding of major investment projects in the region, to expand its lending to robust projects in partnership with the IDB, through the availability of the IDB’s partial credit guarantees and direct loans.
Managing director of FirstCaribbean International Bank, Jamaica Ltd, Milton Brady, noted that the risk-sharing agreement is a clear vote of confidence by the IDB in the Bank and the region.
“Over the past few years, FirstCaribbean has secured major path-breaking deals in capital markets and corporate financing throughout the region. Underpinning our bank’s ethos is our commitment to innovation in support of regional development and this partnership allows us to leverage our financial strength to help our clients who are themselves committed to this development to continue on their growth path.
The deal is not exclusive to major companies, since smaller businesses are also eligible for mid-size corporate loans for the purposes of diversification.
FirstCaribbean says it anticipates that the risk-sharing arrangement will ultimately be expanded to other countries which are members of the IDB in which FirstCaribbean has a presence.