Canada, IDB Launch $1 Billion Financing Push for Latin America

IDB President Ilan Goldfajn said the agreement will make it possible to finance projects that improve roads, ports, electricity and water systems while strengthening critical mineral supply chains across the region.

The Inter-American Development Bank (IDB) and the Government of Canada have signed a landmark $200 million guarantee agreement that will unlock up to $1 billion in new financing for projects across Latin America and the Caribbean, with a strong focus on critical minerals and climate-resilient infrastructure.

The agreement was signed in Guatemala City by IDB Group President Ilan Goldfajn and Canada's Secretary of State for International Development, Randeep Sarai. The guarantee will expand the IDB's lending capacity while maintaining its financial strength and strong credit rating, allowing the bank to support more development projects without requiring additional shareholder capital.

Investment targets mining value chains and essential infrastructure

A major share of the new financing will support the IDB LAC Minerals initiative, which seeks to strengthen critical mineral value chains across the region. The funding will help expand mineral processing capacity, improve supporting infrastructure and encourage responsible mining practices that create greater value before exports reach international markets.

The guarantee will also support the IDB Group's Ready and Resilient Americas initiative, which focuses on strengthening infrastructure that can better withstand natural disasters and climate-related shocks. Planned investments include transport networks, energy systems, water infrastructure and digital connectivity, helping communities maintain essential services during emergencies while improving long-term economic resilience.

Long-standing partnership expands regional development

IDB President Ilan Goldfajn said the agreement will make it possible to finance projects that improve roads, ports, electricity and water systems while strengthening critical mineral supply chains across the region. He added that the partnership with Canada demonstrates a shared commitment to supporting sustainable economic growth throughout Latin America and the Caribbean.

Randeep Sarai said Canada and the IDB have worked together for more than six decades and that the new agreement reinforces their commitment to sustainable development. He noted that investing in resilient infrastructure and responsible critical mineral industries will help create stronger economies while supporting a more stable and prosperous future for the region. The additional financing will be available only for IDB projects that meet the bank's environmental, social, integrity and fiduciary standards, ensuring investments are delivered responsibly and sustainably.