The total authorized capital of NADB is $3 billion with equal commitments from the United States and Mexico.  Each country has authorized the subscription of 150,000 shares of the bank’s capital stock with a par value of $10,000 per share. Fifteen percent of the authorized capital is in the form of paid-in capital to be provided in scheduled installments as agreed by the two governments, and the remaining 85 percent is in the form of callable capital.

NADB Capital Structure
Country	Paid-In Capital	Callable Capital	Total
United States	$225,000,000	$1,275,000,000	$1,500,000,000
Mexico	$225,000,000	$1,275,000,000	$1,500,000,000
Totals	$450,000,000	$2,550,000,000	$3,000,000,000

Paid-in capital consists of cash funds contributed to the NADB after appropriation by the two governments.  Paid-in capital, once contributed, is actually held by the NADB and invested in short- to medium-term, high quality, fixed-income securities.  It acts as the bank’s cash reserves, which, in addition to providing loan loss reserves, can be used for a limited amount of direct lending. The paid-in capital must be maintained at adequate levels to protect the bank’s creditors and ensure its operational integrity.

Callable capital does not represent actual cash funds contributed to the NADB by the two governments.  It is composed of funds that are pledged to be provided to the NADB from the two countries only if required to meet the bank’s obligations on borrowings of funds for inclusion in its capital resources as specified in the Charter. In other words, callable capital is essentially a guaranty for any bonds issued by the bank to raise funds in the capital markets for its lending program. Because no actual cash funds are received, callable capital may not be used to make loans directly.

Ninety percent of the NADB’s authorized capital may be used to finance environmental infrastructure projects in the border region. The remaining ten percent of the capital subscribed by each country is allocated to finance community adjustment and investment throughout the United States and Mexico in support of the purposes of NAFTA.

The first capital installment was made by both governments in November 1994. As of January 31, 2008, NADB had received a total of US$390,123,214 in paid-in capital with US$2.21 billion in associated callable capital, representing 86.69 percent of its total subscribed capital. Of the paid-in capital, US$345,123,214 relates to NADB's international environmental program and US$45 million to the domestic programs for community adjustment and investment.

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