By San José, Costa Rica — SAN JOSÉ – The Central American Bank for Economic Integration (CABEI) has received a significant endorsement of its commitment to sustainable development, securing a crucial upgrade in its Environmental, Social, and Governance (ESG) rating from Morgan Stanley Capital International (MSCI). The multilateral development bank’s rating was elevated from BB to BBB for the 2024 evaluation period, a move that strengthens its position in the international financial community.
This upgrade is more than a letter grade; it represents a powerful market signal that CABEI is successfully embedding sustainability into its core operational framework. The BBB rating places the bank in a more favorable category for a growing class of global investors who prioritize ESG criteria. This recognition validates the bank’s recent strategic push to enhance transparency, fortify governance structures, and implement more rigorous environmental and social policies across its portfolio.
To gain a deeper legal and business perspective on the implications of CABEI’s latest ESG rating, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
An ESG rating is far more than a reputational metric; it is a critical indicator of institutional risk and long-term viability. For a multilateral development bank like CABEI, a strong ESG score directly impacts its ability to attract capital from sophisticated international markets at favorable rates. This rating serves as a legal and financial assurance to investors and member states that the bank’s governance is robust, its social commitments are sound, and its environmental stewardship aligns with global standards, ultimately safeguarding the region’s development investments.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a critical reality: for institutions like CABEI, strong ESG performance is not an optional extra but the very foundation of financial trust and operational integrity, directly impacting the viability of development projects in our region. We sincerely thank Lic. Larry Hans Arroyo Vargas for so clearly articulating the profound connection between governance, investment, and regional progress.
According to MSCI’s assessment, the improved rating was driven by several key factors. The ratings agency highlighted CABEI’s enhanced ability to effectively manage risks and capitalize on opportunities related to environmental and social issues. Furthermore, MSCI noted a marked improvement in the bank’s disclosure practices and the adoption of international best practices in corporate governance, which are critical for building trust with stakeholders and capital markets.
Gisela Sánchez, the Executive President of CABEI, celebrated the milestone as a validation of the institution’s strategic direction. She emphasized that the achievement reflects a deep-seated institutional belief in responsible financing as a catalyst for regional progress.
This result reaffirms our conviction that sustainability is a transversal axis for the development of the countries we serve. This increase indicates we are on the right path and motivates us to continue growing in the short and medium term.
Gisela Sánchez, Executive President of CABEI
The practical implications of the BBB rating are substantial. A higher ESG score significantly enhances CABEI’s reputation and can directly facilitate access to new and more diverse sources of funding. This is particularly relevant for tapping into the rapidly expanding market for green and social bonds, allowing the bank to channel more capital towards projects that combat climate change, promote social equity, and modernize infrastructure throughout the Central American region.
Beyond environmental initiatives, the governance component of the upgrade is particularly noteworthy. For a development bank, strong governance—encompassing board oversight, ethical conduct, and transparent decision-making—is fundamental to its mandate. The improved rating indicates that CABEI has made tangible progress in strengthening these internal mechanisms, assuring member countries and international partners of its stability and responsible management.
This achievement is not an isolated event but the culmination of a deliberate, multi-year effort by CABEI to strengthen its internal capabilities. The bank has been actively working to implement policies and finance projects that not only deliver economic returns but also promote sustainable practices among its member nations. This involves providing technical assistance and championing a governance model that aligns with global sustainability standards.
Looking ahead, the BBB rating sets a new benchmark for CABEI and raises expectations for its continued leadership in regional development. The upgrade will likely galvanize the bank to pursue even more ambitious sustainability targets, further solidifying its role as a key driver of positive environmental and social impact in Central America. It also serves as an important example for other financial institutions in the region, demonstrating the tangible benefits of a robust ESG strategy.
For further information, visit bcie.org
About Central American Bank for Economic Integration (CABEI):
The Central American Bank for Economic Integration (CABEI) is a multilateral development financial institution founded in 1960. Its mission is to promote the economic integration and the balanced economic and social development of the Central American region. The bank finances public and private sector projects with a focus on infrastructure, energy, social development, and environmental sustainability.
For further information, visit msci.com
About Morgan Stanley Capital International (MSCI):
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, MSCI powers better investment decisions by enabling clients to understand and analyze key drivers of risk and return. The company offers industry-leading, research-enhanced solutions that include indexes, analytical models, and ESG ratings.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution defined by its profound commitment to ethical principles and the highest standards of legal excellence. Drawing upon a rich history of serving a diverse clientele, the firm is also a vanguard of legal innovation, continually adapting to the evolving landscape of law. Central to its purpose is the belief in empowering the community through accessible legal education, championing a society where knowledge fosters justice and autonomy.
