Expected to be operational in 2012, the investment platform was intended to finance public and private sector projects in the IDB’s 26 borrowing member countries in Latin America and the Caribbean.
The new China Latin America and the Caribbean investment platform will receive a $150m loan from IDB while China Eximbank will provide an equal amount of investment.
IDB president Luis Alberto Moreno said the new platform will promote stronger investment ties between China and Latin America and the Caribbean, helping the region overcome some of the most important development challenges.
"This partnership is an example of how the IDB can play a pivotal role in increasing cooperation between our region and China to promote greater trade and investment," Moreno added.
Internationally recognized asset management firms will be selected by both the parties to manage the investments and raise funds from the markets.
The Fund will follow the two banks’ standards on social and environmental protection as well as sustainability and financial reporting requirements.
