The African Development Bank Group (AfDB) and the Central American Bank for Economic Integration (CABEI) have signed a letter of intent to strengthen their capital frameworks and expand cooperation in development finance, a move aligned with broader multilateral development bank reform efforts championed by the Group of Twenty (G20).
The agreement was signed in Washington, D.C. on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings 2026, with both institutions committing to balance sheet optimisation and the adoption of innovative financial instruments to support economic growth and social outcomes across their respective member countries.
CABEI Executive President Gisela Sánchez said the signing marks the beginning of a strategic partnership, highlighting planned collaboration in areas such as exposure exchange arrangements and participation in each other’s bond issuances.
Hassatou N’Sele, Vice President for Finance and Chief Financial Officer of the AfDB, said the agreement represents an initial milestone in deepening institutional ties. She pointed to the similarities in sovereign risk profiles between their member countries and a prior track record of joint benchmark bond issuances as a firm foundation for the relationship.
Both institutions said the partnership would promote knowledge sharing on financial tools and build institutional capacity, with a memorandum of understanding (MOU) intended to formalise the cooperation as it expands.
Multilateral development banks have been advancing reform efforts since mid-2024, increasing additional lending headroom for development projects by more than $250 billion over the next decade, bringing total gains from reform to more than $650 billion.
CABEI, a regional multilateral lender serving 15 member countries, has financed roughly half of all multilateral development bank lending to Central America over the past two decades. The AfDB has previously signed exposure exchange agreements with both the Asian Development Bank (ADB) and the Inter-American Development Bank (IADB), with N’Sele having led the AfDB’s balance sheet optimisation framework since its establishment.
