November 5, 2021
IDB Invest announces the issuance of a 50 million Australian dollar, 10-year fixed rate bond, the first blue bond in Latin America and the Caribbean. The announcement was made during the UN COP26 and highlights IDB Group’s commitment to creating innovate financial solutions for climate action.
The proceeds will support projects that contribute to the UN Sustainable Development Goal 6, expanding clean water and sanitation to people in the region. The inaugural bond lays the groundwork for future blue bonds that finance projects in other industries, such as low-carbon and resilient ports, the circular economy and sustainable tourism.
“Accelerating the blue economy will be a key driver in transitioning to an inclusive, low-carbon and resilient future,” said IDB President Mauricio Claver-Carone. “With this first blue bond, IDB Group is promoting a groundbreaking approach to financing climate action and attracting new investors to Latin America and the Caribbean.”
Blue bonds are uniquely relevant to Latin America, with 25% of its population living on the coast. The Caribbean is home to 23 small and island countries surrounded by coastlines and is more susceptible to the effects of climate change.
“Blue bonds are emerging as an innovative financial solution to mobilize capital and create sustainable business opportunities in ocean and freshwater conservancy,” said IDB Invest CEO James P. Scriven. “This is a triple win for people, nature and the economy.”
This is the sixth bond issued under IDB Invest’s Sustainable Debt Framework launched this year. To date, IDB Invest has issued $1.6 billion under the framework, including one sustainability benchmark bond, two social bonds, two green bonds and its first blue bond.
IDB Invest is the private sector institution of the Inter-American Development Bank (IDB) Group rated Aa1/AA+/AAA.