ACB Caribbean Group and CDF Sign Agreement to Enhance Financing for SMEs

CDF and ACB Caribbean Group officials at the signing ceremony (Photo ACB Caribbean Group)

Introduction to the Agreement

ST. JOHN’S, Antigua, CMC—The ACB Caribbean Group said it signed an agreement with the Barbados-based CARICOM Development Fund (CDF) to enhance financing for small and medium-sized enterprises (SMEs) engaged in renewable energy and energy efficiency projects in Antigua, Barbuda, and Grenada.

In a statement Monday, the ACB Caribbean Group, formerly the Antigua Commercial Bank Ltd., said that signing the Master Guarantee Agreement under the Credit Risk Abatement Facility (CRAF) marks a milestone in sustainable finance and climate resilience in the region.

The Credit Risk Abatement Facility (CRAF) Initiative

The CRAF initiative is designed to support SMEs by mobilising capital through credit enhancement and offering targeted technical assistance. It tackles head-on the often-cited challenge that banks are not supportive of small businesses.

“The ACB Caribbean Group is thrilled to sign the Credit Risk Abatement Facility (CRAF) agreement …alongside the CARICOM Development Fund. This initiative directly aligns with the implementation of our strategic plan for the next three years, and we are eager to roll it out in both Antigua and Barbuda and Grenada,” said ACB Caribbean Group general manager Joanna Charles.

Support for SMEs

The statement said the CRAF supports SMEs through the banking sector for renewable energy and energy efficiency projects by providing credit enhancement and targeted technical assistance.

“This aligns with several key areas of our strategic plan – implementing a practical and meaningful ESG strategy and empowering our customers with access to financing and support as they adopt sustainable, environmentally conscious business practices.

“ACB Caribbean Group is proud to be the first lending institution to sign this agreement in our territories. We are excited about what the future holds for our customers and future generations who will benefit from this program.”

Importance of Private Sector Involvement

The CDF’s chief executive officer, Rodinald Soomer, emphasised the importance of including the private sector in climate resilience strategies.

“It is essential to close the circle on resilience building by bringing the private sector front and center into national and regional efforts at implementing a long-term sustainable response to climate change mitigation and systematic adaptation to its impacts.

“Within this context, the CDF is pleased to welcome the ACB Caribbean Group as a strategic financing partner to the Credit Risk Abatement Facility,” Soomer said, adding that “this is a most opportune time to advance this endeavor, given the increasingly urgent need for access to domestic and regional financing for the energy transition in the Caribbean — particularly in light of the escalating impacts of climate change and recent geopolitical developments.

He added, “Now more than ever, we must collaborate to design and scale viable, home-grown, and sustainable development solutions. ”

Alignment of Goals

The partnership marks a strong alignment between the two organizations’ goals, with ACB Caribbean Group’s customer-focused small business program pivoting to ensuring that diverse business needs are met across both territories.

“The signing represents a shared vision to drive environmental sustainability, climate resilience, and economic empowerment throughout the region,” the statement added.

Conclusion

The agreement between ACB Caribbean Group and CDF is a significant step towards enhancing financing for SMEs in the region. The partnership is expected to have a positive impact on the environment, climate resilience, and economic empowerment in Antigua, Barbuda, and Grenada.

Frequently Asked Questions (FAQs)

What is the Credit Risk Abatement Facility (CRAF) initiative?

The CRAF initiative is designed to support SMEs by mobilising capital through credit enhancement and offering targeted technical assistance.

What is the goal of the partnership between ACB Caribbean Group and CDF?

The goal of the partnership is to enhance financing for SMEs engaged in renewable energy and energy efficiency projects in Antigua, Barbuda, and Grenada.

How will the partnership benefit the region?

The partnership is expected to have a positive impact on the environment, climate resilience, and economic empowerment in Antigua, Barbuda, and Grenada.