Canada and IDB sign $200 million guarantee to unlock $1 billion for LAC minerals and infrastructure

The Inter-American Development Bank (IDB) and the Government of Canada have entered a $200 million guarantee arrangement aimed at unlocking as much as $1 billion in fresh funding for work on critical-mineral supply chains and hardy public infrastructure throughout Latin America and the Caribbean.

IDB Group President Ilan Goldfajn and Canada's Secretary of State (International Development) Randeep Sarai put their signatures to the pact in Guatemala City. Under the deal, the IDB can grow how much it lends while keeping its finances sound and its strong credit-risk standing intact.

The guarantee is built around two regional priorities.

On critical minerals, it will reinforce IDB LAC Minerals, a programme meant to toughen value chains in strategically important minerals. Backed projects are expected to widen processing capacity, build the infrastructure required to move more value through the chain via responsible mining, and link Latin America and the Caribbean more firmly to world markets.

On resilient infrastructure, the guarantee ties into the IDB Group's Ready and Resilient Americas effort, which helps member states brace for and bounce back from natural disasters. It will fund investments in transport, energy, water, and digital systems designed to keep vital services running when shocks hit.

"This guarantee will support up to $1 billion in additional financing for projects that strengthen economic resilience — roads, ports, electricity, and water systems that can better withstand disasters — and strengthen critical-mineral value chains," said Goldfajn.

"By using our balance sheet more effectively, we can deliver more for our member countries. Canada is a valued and longstanding partner, and this agreement reflects our shared commitment to growth across the region."

"Canada and IDB have been steadfast partners for over 6 decades," said Sarai.

"Today, we are reinforcing that partnership by jointly signing a guarantee agreement to unlock sustainable development across Latin America and the Caribbean. Together, we are investing in the future of the region by supporting economic growth through strengthening critical minerals value chains and building climate-resilient infrastructure to help secure a more stable and prosperous world.''

The guarantee applies to part of the IDB's portfolio of sovereign-guaranteed exposure, giving the institution room to make better use of its balance sheet and lend more without calling on shareholders for extra capital.

Any added financing under the arrangement will go only to IDB-backed projects in critical minerals and resilient infrastructure that satisfy the Bank's environmental, social, integrity, and fiduciary requirements.