BROWNSVILLE, Texas – The North American Development Bank has announced a $200 million temporary financing program in response to the effects of the COVID-19 pandemic.
NADB Managing Director Calixto Mateos-Hanel said the program will support projects that have both environmental benefits and direct positive impacts on the economy of the U.S.-Mexico border region and the health and well-being of border residents.
The program will provide as much as $200 million and includes up to $15 million in technical assistance.
NADB is a financial institution established and capitalized in equal parts by the United States and Mexico for the purpose of financing environmental infrastructure projects along their common border.
Mateos-Hanel said that as a pioneer institution in its field, NADB is working to develop environmentally and financially sustainable projects with broad community support in a framework of close cooperation and coordination between Mexico and the United States.
In order to observe social distancing, NADB’s Board of Directors held its first semiannual meeting of 2020 electronically. Close to 200 people from various communities on both side of the U.S.-Mexico border registered to connect to the meeting online.
“The actions taken by the Board today reflect the confidence that both governments have in NADB and its ability to carry out its mission of assisting border communities with their environmental projects,” Mateos-Hanel said.
“Thanks to the governments’ commitments to fund the Bank’s first capital increase, along with strong risk management practices and conservative liquidity requirements, NADB’s ratings from Fitch and Moody’s remain strong, enabling it to deal with the new global economic reality and finance projects that support the environment, health and economies of communities located in the border region.”
Within the new coronavirus program, the NADB board may consider approval of loan proposals:
- Under a programmatic approach, whereby environmental infrastructure projects with similar characteristics may be financed by NADB pursuant to a single certification;
- To refinance existing debt on environmental infrastructure or public entities, such as water utilities, whose mandate is aligned with the Bank’s mission; and
- To support the development and financing of projects with environmental benefits that promote the creation or preservation of jobs, betterment of health and/or health services, or improvement of technological connectivity and access to information in times of environmental and health catastrophes.
During the meeting the Board, led by representatives of the U.S. Department of the Treasury and the Mexican Ministry of Finance and Public Credit, also reported that the United States recently made its initial contribution of capital pursuant to NADB’s first capital increase, subscribing to $10 million in paid-in capital and $56.67 million in callable capital.
With this subscription, the U.S. matched the initial amount contributed by Mexico in September 2016. In the context of the first capital increase of the Bank, both parties have committed to continue making the relevant contributions in the coming years to strengthen the Bank.
In over 25 years of operation, NADB has approved loans and grants to support the implementation of infrastructure projects representing a total investment of close to $10 billion in benefit of approximately 18 million residents on both sides of the U.S.-Mexico border.
Editor’s Note: The main image accompanying the above news story shows the North American Development Bank board of directors at a November 2019 meeting.
Our Journalism depends on You!
Support local coronavirus reporting for a healthier and safer South Texas. The Rio Grande Guardian is committed to producing quality news reporting on the issues that matter to border residents. The support of our members is vital in ensuring our mission gets fulfilled.
Can we count on your support? If so, click HERE. Thank you!