L-R: Stefano Capodagli, Chief Risk Officer CDB; Katie Birks, CDB Alternate Director Canada; Diana Wilson-Patrick, General Counsel CDB; Philippe Hall CDB Director Canada; Daniel M. Best, CDB President.
Press Release
June 12, 2026
The Caribbean Development Bank’s (CDB, the Bank) Board of Directors has approved the advancement of a landmark First-Loss Portfolio Credit Guarantee with the Government of Canada, which the Prime Minister of Canada announced 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, a CDB release dated June 2, 2026 states.
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, the release also states.
Speaking on the margins of the Bank’s 56th annual Board meeting in Nassau Bahamas, CDB President Daniel M. Best, described the initiative as a transformational milestone.
“This is an important step towards the agreement that will enhance our ability to deliver on our mandate at a critical time for the Caribbean. It allows us to increase investment in resilience, opportunity, and economic development while safeguarding the Bank’s financial strength.”
The guarantee builds on CDB’s ongoing balance sheet optimisation efforts and aligns with global efforts led by the G20 to strengthen multilateral development banks and scale development impact.
Director, International Financial Institutions Division for Global Affairs Canada, Philippe Hall said, “The Government of Canada’s support underscores its commitment to support reforms and innovations among Multilateral Development Banks for advancing sustainable development and strengthening resilience in Caribbean Small Island Developing States”.
With the expected increase in its financing capacity, CDB will prioritise projects that advance climate action, regional integration, and economic development, consistent with CDB’s Strategic Plan.
