Investor Relations

 

The Caribbean Development Bank (CDB) is a regional financial institution established by an Agreement signed in Kingston, Jamaica, in 1969. CDB intends to be the leading catalyst for development resources in the Region, working in an efficient, responsive and collaborative manner with our Borrowing Member Countries and other development partners, towards the systematic reduction of poverty in their countries through sustainable development.

BASIC INFORMATION

RATINGS:    Moody’s: Aa1, Stable

S&P: AA+, Stable

Fitch: AA+, Stable

LOCATION: Wildey, St. Michael, Barbados, West Indies

PRESIDENT: Dr. William Warren Smith

Dr Warren Smith May2016An alumnus of Cornell University, USA, Dr. Smith has served as a Chief Executive Officer and in other senior management roles in the Caribbean for over 25 years, the last five of which were as President of the Caribbean Development Bank (CDB). He is supported in his role by a strong management team.

Management Team

Name Position
Yvette Lemonias-Seale Vice-President (Corporate Services) and Bank Secretary
Monica La Bennett Vice-President (Operations)
Malcolm Buamah Chief Risk Officer
Carlyle Assue Director, Finance and Information & Technology Solutions
Daniel Best Director, Projects Department
Diana Wilson-Patrick General Counsel
Justin Ram Director, Economics
Phillip Brown Director, Human Resources & Administrative Department

Overview

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Who we are

  • A regional financial institution established in 1969.

  • Membership: 28 countries consisting of 19 Regional borrowing members; 4 Regional non-borrowing Members; and 5 Non-Regional non-borrowing Members.

  • Regional Borrowing Shareholders: Jamaica, Trinidad & Tobago (17.31%); Bahamas (5.10%); Guyana (3.73%); Barbados (3.25%); Suriname (1.49%); Belize, Dominica, St. Lucia, St. Vincent and the Grenadines, Antigua and Barbuda, St. Kitts and Nevis (0.77% each); Grenada (0.66%); Anguilla (0.16%); Montserrat, British Virgin Islands, Cayman Islands, Turks and Caicos Islands (0.19% each) (Together classified by CDB’s Board as a single member); and Haiti (0.78%).

  • Regional Non-borrowing Shareholders: Colombia, Venezuela, Mexico (2.79% each); and Brazil (1.12%).

  • Non-regional Non-borrowing Shareholders: Canada, United Kingdom (9.31% each); and Italy, Germany, China (5.58% each).

Operations

The Bank’s main goals are to promote sustainable economic development and to reduce poverty.   Its primary financial objective is to earn adequate operational income to maintain financial strength and to sustain its developmental activities.

The operations of the Bank are divided into two categories, ordinary operations and special operations.

Ordinary operations are financed from the Bank’s Ordinary Capital Resources (OCR) which comprises share capital, borrowings raised in the capital markets, lines of credit from commercial and other multilateral institutions and internally generated equity.

Special operations are financed from the Special Funds Resources (SFR), comprising the Special Development Fund (SDF) and Other Special Funds (OSF).

What is our purpose/objective?

To contribute to the harmonious economic growth and development of our member countries in the Caribbean and to promote economic cooperation and integration among them, having special and urgent regard to the needs of the Less Developed Countries (LDCs) of the Region.

How do we do this?

CDB provides loans, grants, equity investments and guarantees to Members to help them achieve their development goals. This is supported through investments in Economic and Social Infrastructure; Education and Training; Agriculture and Rural Development; Private Sector Development; Water and Sanitation; Environmental Management; Climate Resilience; Energy Efficiency and Renewable Energy (EE & RE); and Disaster Risk Management.

Financial Position

(All figures are as of December 31, 2016 unless otherwise specified.

Annual Reports
The Annual Report of the Board of Directors to the Board of Governors reviews CDB’s operations, programmes and initiatives, human resources management, external relations and partnerships, and financial management, and includes the financial statements and reports of the independent auditors and appendices. The report also reviews economic developments in CDB Borrowing Member Countries (BMCs) and Regional sector performance. Click here to view CDB’s Annual Reports.

Capital

  • Total Subscribed Capital: $1,764 mn, comprising $389 mn of paid-in capital and $1,375 mn of Callable Capital
  • Total Assets: $1,599 mn with a Net Loan Portfolio of $1017 mn
  • Outstanding Borrowings: $655 mn
  • Total Equity: $897 mn

Liquidity

CDB’s strong liquidity position reflected in compliance with its monitoring threshold at net 3 years funding requirement or 40% of undisbursed commitments, whichever is greater.  CDB has been in compliance with these thresholds in keeping with Management’s decision to maintain high liquidity levels.

Funding

  • Lines of credit from Multi-Lateral Institutions
  • Market Borrowings
  • Equity from Shareholders
  • Retained Earnings
  • Contribution from Shareholders to Special Funds
  • Contingency funding from highly rated international banks

Capital Markets & Borrowings

How much does the Bank borrow each year?

The Bank completes its requirements based on its liquidity needs.

Our Funding Strategy

  • To offer investors a diversified product mix
  • To borrow resources at rates below those which BMCs can access with their balance sheets
  • To approximate the term of borrowings to that of its loans

Does CDB issue Bonds?

Bonds issued when liquidity is needed.

Enterprise Risk Management

CDB has a dedicated independent Office of Risk Management function, responsible for managing the entire enterprise risk management position of the Bank. The function is led by a Chief Risk Officer reporting directly to the President and Board of Directors.

Exposure Management

CDB actively manages its exposure through active credit surveillance, application of limit controls and monitoring of exposures. 

Loan Portfolio Composition

CDB is seeking to broaden the loan portfolio within a contemporary risk management framework.  The three largest country exposures are Jamaica (17%), Barbados (15%), and Belize (10%).

A distribution of the Loan Portfolio as at December 31, 2016 is represented below.  CDB’s diversification efforts, in particular, seek to improve the geographic distribution and average rating of the portfolio over the medium term with an overview represented in the following graph.

CDB’s geographic diversification efforts have yielded positive results, with trends in the movements of the portfolio represented in the graphs following.

Pillar III Risk Disclosure

CDB has undertaken to discharge our enhanced risk disclosure reporting obligations by ensuring our risk positions and developments are captured in our annual reports and website on a regular basis. (See Risk Review on page 52 of 2016 Annual Report).

Governance

CDB has strengthened its governance significantly with improvements in its Internal Audit capacity; expansion of the role of its Board Assurance Oversight Committee to include risk, independent investigations and compliance; approved a Strategic Framework for Integrity, Compliance and Accountability and established an independent office in that regard.

New Initiatives

Developmental

CDB and the University of the West Indies (UWI) through approved grant funding to provide competency-based training to enhance the capacity of entrepreneurs from CARICOM Member States in the manufacture of cocoa value-added products.

Energy

CDB, the IDB and Japan International Cooperation Agency (JIICA) concluded a Memorandum of Cooperation in July 2014 to facilitate the introduction of Renewable Energy (RE) and Energy Efficiency (EE) in the Eastern Caribbean, with special focus on geothermal development.

Climate Change

CDB has been accredited to the Adaptation Fund on February 26, 2016 and is seeking accreditation to the Green Climate Fund, prime conduits for concessionary resources to assist developing countries in countering the negative impact of climate change.

Partnerships

In partnership with the World Bank and IDB, CDB has launched a Regional Public Private Partnership (PPP) Support Facility which aims to improve the capacity of Regional governments by offering training to government staff, developing an online Regional PPP Toolkit, and providing ad hoc technical assistance to PPP programmes and projects.

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Rating Agency Reports

The major rating agencies Moody’s and Standard & Poor’s have assigned a strong ‘Aa1/Stable’ & ‘AA+/Stable’ rating respectively to CDB’s OCR, the bank’s primary operations. The outlooks reflect the Bank’s strong business profile, membership supports and continuous strengthening of its governance structures.

Related News:

July 4, 2016
CDB Launches Historic Bond Offering in the Swiss CHF Market

March 15, 2016
Brazil joins Caribbean Development Bank

January 21, 2016
Meet Warren Smith – and his big Caribbean vision

September 30, 2015
UK Caribbean Infrastructure Fund

May 21, 2014
Caribbean Development Bank returns to “Stable” Outlook with S&P Review

November 5, 2013
CDB’s Focus on Enterprise Risk Management Yields Benefits

February 8, 2013
Highlights of CDB’s Activities in 2012 and Economic Background and Prospects

December 14, 2012
New Standard and Poor’s Rating for CDB

June 15, 2012
CDB’s response to credit rating downgrades

May 21, 2012
The Caribbean Development Bank’s (CDB) Response to Moody’s Investors Service Press Release on CDB

August 24, 2010
Standard and Poor’s Re-Confirms CDB’s AAA Rating

Selected Presentations

Useful Links

DISCLAIMER: This investor update has been prepared by the Caribbean Development Bank (CDB) for information purposes only. CDB makes no representation, warranty, or assurance of any kind, express or implied, as to the accuracy or completeness of any of the information contained herein. This investor brief may include information relating to certain CDB securities. Any such information is provided only for general informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any CDB securities. The securities mentioned herein may not be eligible for sale in certain jurisdictions or to certain persons