The Caribbean Development Bank (CDB) extends its heartfelt thanks to the Government of Canada for its groundbreaking announcement at the 2025 G7 Leaders’ Summit, which includes a Portfolio Guarantee of up to US$200 million for CDB. This announcement by Canada marks a transformative milestone in expanding development financing for the Caribbean. The initiative bolsters CDB’s capacity to deliver essential support to its Borrowing Member Countries while reinforcing the Bank’s financial resilience and enhancing its capital optimisation.

The Portfolio Guarantee is expected to play a catalytic role in optimizing CDB’s balance sheet, freeing up substantial risk capital and increasing lending headroom to advance development solutions across the region. 

CDB President, Mr. Daniel Best, expressed heartfelt gratitude for Canada’s commitment, stating: "Canada’s support is a game-changer for the Bank and the region. The Portfolio Guarantee reflects the transformative potential of partnerships and financial innovation to drive meaningful development outcomes. This initiative will expand our lending capacity to address the critical needs of our Borrowing Member Countries while reinforcing the Bank’s financial strength and reputation. We are incredibly grateful to Canada for their leadership and confidence in CDB, and we look forward to delivering on the promise of this partnership for the people of the Caribbean."

This initiative aligns with CDB’s Balance Sheet Optimisation (BSO) programme, which seeks to adopt innovative financial instruments inspired by other multilateral development banks to protect credit ratings and increase development lending. Supported by Canada’s leadership and funding, this initiative also complements CDB’s efforts to leverage innovative mechanisms such as Portfolio Guarantees and Exposure Exchange Agreements for greater financial impact.

The announcement is part of Canada’s broader G7 initiative to drive innovative financing at multilateral development banks, dedicating up to US$400 million in portfolio guarantees to the Inter-American Development Bank (IDB) and CDB. This funding is anticipated to unlock up to US$1.6 billion in new development financing to address challenges across Latin America and the Caribbean.

CDB also commends Canada’s strategic leadership as G7 President, prioritizing impactful development solutions for emerging markets and fostering global partnerships in support of sustainable development. This commitment underscores Canada’s dedication to advancing the economic resilience of small island developing states and their communities.

The Bank remains confident in the tangible benefits this partnership will deliver—empowering the region to address pressing environmental, social, and economic needs while ensuring long-term financial sustainability.