CDB approves US$200m guarantee for Caribbean Development

Published on June 8, 2026

The Caribbean Development Bank’s Board of Directors has approved the advancement of a landmark First-Loss Portfolio Credit Guarantee with the Government of Canada.

This was announced by the Prime Minister of Canada at the last G7 Leaders’ Summit in Kananaskis in June 2025.

The US$200 million guarantee will significantly strengthen the Bank’s ability to deliver development financing across the Caribbean.

The approval of the transaction by the Board of Directors during the Bank’s 56th Annual Meeting represents a major step forward in innovative development finance, as the guarantee will allow CDB to reduce its portfolio risk, to enhance its capital position, and to expand its lending capacity.

The guarantee is expected to generate up to US$400 million in additional financing capacity, supporting investments in climate resilience, sustainable infrastructure, and economic development.

Speaking on the margins of the Bank’s 56th Annual Board Meeting in Nassau Bahamas CDB President Mr Daniel M. Best described the initiative as a transformational milestone.