NASSAU, BAHAMAS- CAF – Development Bank of Latin America and the Caribbean has approved a USD S100 million loan to support energy sector reforms in The Bahamas. The operation was approved by CAF’s Board of Directors, during its meeting in Seville, Spain, and marks the first sovereign loan to The Bahamas since the country became a CAF shareholder in November 2024.
The approved financing will support the Government of The Bahamas in implementing key elements of its National Energy Policy, including strengthening the regulatory framework, modernizing infrastructure, promoting renewable energy, and improving energy efficiency. The operation aligns closely with CAF’s Green Agenda and will help advance the country’s push towards climate change mitigation by supporting a transition to cleaner and more sustainable energy sources.
With this approval, The Bahamas is expected to benefit from improved electricity reliability, reduced generation costs, and greater resilience to climate-related disruptions. The reforms are also expected to attract new investments in energy infrastructure.
“The Bahamas is one of CAF’s newest shareholder countries, and we are proud to approve our first sovereign operation in support of its national commitments to more sustainable energy,” said Sergio Díaz-Granados, Executive President of CAF. “We do not take lightly the trust that the government and people of The Bahamas have placed in CAF. This approval reflects our commitment to being a reliable partner in the country’s pursuit of sustainable and inclusive growth. We understand the unique challenges faced by small island developing states, and we stand ready to continue deepening our collaboration in support of The Bahamas.”
The program will also enhance institutional capacity and create a foundation for long-term investment in the country’s energy transition. With this operation, CAF continues to expand its support to the Caribbean, advancing efforts to provide tailored financial and technical solutions for its member countries.
