IDB Invest partnered with Banco Nacional de Costa Rica (BNCR) to launch Costa Rica's first blue bond, a significant step towards bolstering the blue economy. IDB Invest committed $25 million to the $50 million bond issuance, while mobilizing an additional $20 million from FinDev Canada and $5 million from LaAGreen.

The blue bond proceeds will help increase financing for companies in Costa Rica for blue economy projects supporting marine-coastal areas, sustainable water and sewage management, and plastic waste management and the circular economy. This project will also strengthen BNCR's capital base and support its systematic development of a blue portfolio.

This collaboration highlights a shared commitment to supporting climate change mitigation and adaptation, conserving natural resources and biodiversity, and promoting sustainable development. The bond adheres to the Social and Green Bond Principles, as well as Blue Bond Guidelines established by the International Capital Markets Association (ICMA).

The issuance was unveiled during IDB Invest's Sustainability Week, a flagship event that gathers hundreds of global leaders from business, government, and civil society to exchange best practices in sustainable business trends. James Scriven, CEO of IDB Invest, and Rosaysella Ulloa Villalobos, CEO of Banco Nacional de Costa Rica, reaffirmed their commitment to and collaboration on blue economy projects.

"We are honored to partner BNCR with this pioneering blue bond, which aims to enhance Costa Rica's financing for blue economy projects, strengthening its capital base, and set a precedent in Central America,” said James Scriven, CEO of IDB Invest. “This landmark initiative paves the way for sustainable investment opportunities and market growth in the blue economy sector." 

“At BNCR we’ve been pioneers in creating sustainable financial products that aim to care for and preserve natural resources. We’re thrilled to announce Costa Rica's first blue bond, an instrument that will help protect the oceans and preserve marine ecosystems, while promoting the blue economy,” said Rosaysella Ulloa Villalobos, CEO of Banco Nacional de Costa Rica. “Last year, we launched the first debit card designed to protect aquifers and guarantee the conservation of the water consumed by people. Our sustainable DNA translates into economic, environmental, and social well-being. With this blue bond we mark a historical milestone that we hope will inspire other countries.”

The Representative of the IDB Group in Costa Rica, Francisco Javier Urra, highlighted the relevance of this issuance to contribute to the sustainable development of the country: “The issuance of this blue bond consolidates Costa Rica as a leader in sustainability, highlighting its vast marine territory, ten times larger than the terrestrial, and its exceptional natural wealth. In collaboration with the BNCR, the IDB Group supports this leadership with an innovative financial instrument that promotes the blue economy, protecting the ocean and improving the quality of life of coastal communities that depend on these marine resources,” said Urra.

Financing for sustainability

Oceans and coastal zones are essential to our planet's natural infrastructure, providing crucial ecosystem services. Costa Rica, with over 51,000 square kilometers of marine territory and 1,200 kilometers of coastline, represents about 4% of the world's biodiversity. These areas support local livelihoods and significantly contribute to the economy through fishing, tourism, and coastal infrastructure.

Blue bonds are an emerging financial instrument aimed at mobilizing capital to solve social and environmental challenges, create sustainable ocean and water-related business opportunities, and signal responsible ocean stewardship in line with the Sustainable Development Goals (SDGs) and the Paris Agreement. 

As the first blue bond in Costa Rica, this project is also expected to have a catalytic effect in financial markets, opening new alternatives for companies and investors interested in blue economy projects.

IDB Invest also supported BNCR with advisory services, including blue investment analysis, developing a Sustainable Financing Framework with blue taxonomy, co-financing the second-party opinion, and conducting a training program to enhance sustainable finance capabilities. IDB Invest and BNCR will collaborate to identify further thematic investment categories, focusing on climate and social areas such as Afro-descendant communities, the silver economy, and indigenous peoples.

This project will contribute to the following United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Clean Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), and Life Below Water (SDG 14).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.                

About Banco Nacional de Costa Rica 

The Banco Nacional de Costa Rica celebrates its 110th anniversary in 2024 and is the leading entity in the Costa Rican financial system that provides quality banking solutions to more than 2.6 million clients in Costa Rica. With a strong commitment to environmental, social, and economic sustainability, it issued the first green bond, the first social bond, and now also the first blue bond in the Central American region to strengthen its sustainable loan portfolio and to help impoverished communities while enhancing financial services for women. Its leadership in renewable energy projects, sustainable finance, and technological innovation has been crucial to guarantee sustainable and equitable development in the Costa Rican economy on the path to economic recovery.

About FinDev Canada

FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and the Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.   

About LAGreen

LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment. As an impact investment fund advised by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany's KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).