July 14

IDB Boosts Latin America ESG Bond Campaign With $1 Billion Push

By Esteban Duarte

Inter-American Investment Corporation is helping companies in Latin America and the Caribbean bring about $1 billion of environmental, social and governance bonds as sustainable financing gains traction in the regions.

That’s equivalent to about 60% of all ESG bonds in which the multilateral bank, known as IDB Invest, has participated in during the past six years, an official said in an emailed reply to questions. IDB Invest, which is part of the Inter-American Development Bank group, provides debt and equity financing as well as advisory services to private sector companies operating in the region.

“I do see a vast majority of our business” related to sustainability, Chief Executive Officer James Scriven said in an interview. “This is the future of our institution, linking development assets to development investors with a sustainable theme.”

The US, Argentina, Brazil, Mexico and China are among 47 countries that own the lender, which is in a process of increasing its focus on ESG financing in Latin America and the Carribean. Specifically, the lender helps companies structure bonds, adds guarantees to some issues in addition to investing in a portion of the debt offerings.

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Source: Bloomberg (link opens in a new window)

ESG, impact investing, sustainable finance