New Frontiers for Financial Innovation
With a new business model and the active search for creative solutions to finance development, 2024 was a year in which IDB Invest generated responses tailored to specific needs, from large institutional clients to micro, small, and medium-sized enterprises (MSMEs). This blog presents some of the most notable ones.
When the IDB and IDB Invest Boards of Governors met in Punta Cana for the Annual Assembly and approved the new business model and capital increase for IDB Invest, they initiated the most significant transformation in the institution's history.
The philosophy of this new business model, Originate-to-Share, connects global capital markets with development challenges and opportunities, thus fostering larger-scale development impacts.
Read the blog: A New Business Model to Multiply Impact in Latin America and the Caribbean
Regular reporting is a pillar of transparency and accountability in the sustainable bond market, ensuring that investors are informed about how proceeds are used and the impacts of projects.
At IDB Invest, we recognize the importance of allocation and impact reports, strive to constantly improve them, and learn some lessons in the process.
Read the blog: Five Best Practices for Sustainable Bond Reporting
However, our efforts are not solely on large transactions and investment funds. Some of our efforts also concentrate on financing institutions that fund MSMEs.
In Peru, for example, our support has notably helped Caja Huancayo deepen its mandate to serve vulnerable populations, especially women in rural areas.
Read the blog: Sustainable Microfinance to Empower Rural Women
With the same philosophy, IDB Invest supported structuring the first sustainable bond in Central America in 2020. This collaborative work with Banco Promerica in Costa Rica set a precedent in the regional financial market.
The commitment of this financial institution to the Sustainable Development Goals is evident, demonstrated by their prioritization of SMEs, green loans, agribusiness, and middle-class mortgages.
Read the story: The Sustainable Bond that Transformed Central America's Financial Market
The blue economy refers to all economic activities that depend on the oceans and their resources. This includes fishing, aquaculture, coastal tourism, maritime transport, and marine renewable energy.
The goal is to generate income while promoting conservation and restoration efforts of the marine ecosystem, creating sustainable activities for vulnerable populations and MSMEs.
Here are more reasons to consider this investment: Five Good Reasons to Ride the "Blue Bond" Wave
These examples show that IDB Invest is committed to financial innovation, designing products that meet the needs of its clients and allow for scaling up its impact on the development of Latin America and the Caribbean.
Authors
José Baig
José is the editor of IDB Invest's Sustainable Business blog.
LIKE WHAT YOU JUST READ?
Subscribe to our mailing list to stay informed on the latest IDB Invest news, blog posts, upcoming events, and to learn more about specific areas of interest.
SubscribeDigital Economy
Related Posts
Financial Health: Driving Growth in Latin America and the Caribbean
According to the latest Global Findex database, the proportion of adults in Latin America and the Caribbean (LAC) with account ownership rose from 39% in 2011 to over 75% in 2025. This increase was driven by the rise of digital-first financial service providers, expanded government transfers, and innovations that enhance the value proposition, such as the growth of e-commerce and instant payment systems in countries like Brazil, Peru, and Costa Rica.
Microinsurance: The New Frontier for Financial Resilience in Latin America and the Caribbean
In Latin America and the Caribbean, fewer than 10% of people with potential access currently use microinsurance services. However, this gap in financial protection is beginning to narrow. The expansion of the insurtech ecosystem is transforming the insurance sector, deploying digital and innovative solutions that strengthen financial protection for the most vulnerable populations.
Five Drivers Reshaping Finance in Latin America and the Caribbean
The tech revolution is breaking down structural financial barriers across Latin America and the Caribbean. Informal workers, rural communities, and small businesses are gaining rapid access to digital savings accounts, microloans, and instant transactions, often at little or no cost. But what’s really driving this transformation?