By: The Inter-American Development Bank
February 2, 2021
IDB Invest, the private sector arm of the IDB Group, has published its Sustainable Debt Framework, which it will use to issue green, social and sustainability bonds and other debt securities.
The aim of IDB Invest Sustainable Debt Securities is to convey IDB Invest’s commitment to sustainable development, to increase transparency among the investor community of its environmental and social impact, and to strengthen IDB Invest’s leadership position in the green and social bond markets throughout Latin America and the Caribbean.
IDB Invest’s innovative framework provides investors which three unique opportunities:
- First ICMA-aligned Sustainability Debt Framework from a high-grade Multilateral Development Bank (MDB): IDB Invest’s Sustainable Debt Framework is the first from an AA or AAA-rated MDB, combining the whole range of its social and green categories under a single framework.
- Sustainable Commercial Paper: Beyond bonds, the Framework will allow IDB Invest to provide money market investors with sustainable commercial paper issues.
- Integrated reporting: Investors will be able to assess both the environmental and social impact of the financed projects in a single, integrated report.
The funds raised through IDB Invest Sustainable Debt Securities will be used for clearly defined green and social categories reflecting the breadth of IDB Invest’s mission. An annual allocation and impact report will provide investors with a transparent, integrated view of the impact of the financed projects and their contribution to the United Nations Sustainable Development Goals.
The Framework, designed with Credit Agricole CIB as sole Sustainable Structuring Advisor, underwent an independent evaluation by Vigeo Eiris, the international social and environmental rating agency. Vigeo Eiris confirmed the Framework’s alignment with the Green and Social Bond Principles published by the International Capital Markets Association and considered that the Framework meets market best practices.
For more information, visit their Investors page here.