IDB and EIB Join Forces in Seville to Ramp Up Co-Financing, Private Investment and EU-Backed Projects in Latin America and the Caribbean

IDB and EIB Join Forces in Seville to Ramp Up Co-Financing, Private Investment and EU-Backed Projects in Latin America and the Caribbean

(IN BRIEF) At FfD4 in Seville, the IDB and EIB signed a cooperation agreement to intensify financing and reinforce development impact in Latin America and the Caribbean. The framework focuses on expanding joint sovereign-backed loans, mobilizing private capital through blended finance and guarantees, harmonizing environmental and social standards via exposure exchanges and staff exchanges, and aligning EU’s Global Gateway objectives with LAC’s infrastructure and development needs. IDB President Ilan Goldfajn highlighted the benefits of MDBs operating as a system, while EIB President Nadia Calviño underscored Europe’s commitment to the region. This partnership aims to translate Global Gateway priorities into concrete investments, accelerating sustainable growth across 26 countries.

(PRESS RELEASE) LUXEMBOURG, 3-Jul-2025 — /EuropaWire/ — At the Fourth International Conference on Financing for Development (FfD4) in Seville, the Inter-American Development Bank (IDB) and the European Investment Bank (EIB) formalized a strategic cooperation agreement designed to boost financing and amplify development outcomes across Latin America and the Caribbean (LAC). By forging tighter collaboration as a unified system, both banks will mobilize more resources for sustainable development projects and accelerate the translation of European Union priorities—under the Global Gateway—into tangible results on the ground.

The agreement encompasses four main pillars:

1. Scaling Up Joint Financing: The IDB and EIB will expand co-financing efforts, including sovereign-guaranteed operations like Results-Based Loans in key sectors, to deliver larger, more impactful investments.
2. Mobilizing Private Capital: Through streamlined coordination on non-sovereign engagements, the partners will deploy innovative instruments—such as blended finance structures, stand-alone guarantees, and co-guarantees—to mitigate risk and attract private investors.
3. Deepening System-Wide Collaboration: Both institutions will explore exposure exchange arrangements, extend mutual reliance beyond procurement to harmonize environmental, social, and results-monitoring frameworks, and facilitate staff secondments to strengthen operational alignment.
4. Aligning European Funding with LAC Priorities: By converting Global Gateway goals into concrete pipelines, the agreement will optimize the impact of EU-backed financing throughout Latin America and the Caribbean.

“This pact exemplifies the power of multilateral development banks acting in concert—aligning tools, mobilizing capital, and speeding up implementation,” stated IDB President Ilan Goldfajn. “Together with the EIB, we’re fortifying links between Europe and LAC while delivering measurable benefits for communities.”

Echoing this sentiment, EIB Group President Nadia Calviño commented, “Europe stands with Latin America and the Caribbean. This enhanced partnership is instrumental in advancing our shared projects and achieving greater development impact on the ground.”

About the IDB

The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.

About EIB Global:

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here. http://twitter.com/EIB https://www.linkedin.com/company/eib-global/

Media Contact:

Enrico Possenti
e.possenti@eib.org
+352 4379 – 82144

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank