The OPEC Fund for International Development (OPEC Fund) has orchestrated a £40 million syndicated loan facility to boost small business lending in Paraguay, marking its first collaboration with the UAE’s Commercial Bank of Dubai in the South American nation.
The facility, arranged for Paraguay’s Banco Continental, sees the OPEC Fund and CBD each contribute £20 million to support lending to small and medium-sized enterprises (SMEs), intended to bolster agricultural financing in the region.
The deal channels funding from the UAE — one of the OPEC Fund’s member states — into Paraguay’s productive sectors, representing a significant milestone in mobilising cross-border development capital.
“Partnering with CBD and Banco Continental, we are channelling resources from our member country UAE to initiatives that directly support SMEs and the agricultural sector – key pillars of sustainable growth and food security in Paraguay,” said Abdulhamid Alkhalifa, president of the OPEC Fund, which acted as sole book-runner and facility agent.
Paraguay has been strengthening its agricultural sector and food security through improved access to finance. Banco Continental, which recently secured an investment-grade rating, views the facility as crucial to expanding its SME lending portfolio.
Juan Carlos Carranza, chief executive of Banco Continental, said the deal would help the bank “offer innovative, solid, and competitive solutions” to Paraguay’s productive sectors.
The arrangement highlights a growing trend of Gulf-based financial institutions expanding their presence in Latin American markets. CBD’s Fahad Al Muhairi noted that the partnership aligns with the bank’s strategy of “advancing sustainable finance while expanding our global footprint”.
