IDB Invest Promotes the Recovery of Nature-based Tourism in Latin America through Explora
The unique and innovative conservation model will be implemented in partnership with The Nature Conservancy
IDB Invest extended a $23 million corporate loan to Explora Chile S.A., a certified B-Corporation, to support the company’s regional growth and recovery from COVID-19, as well as to finance the development and required investments of a nature reserve in Torres del Paine, Chile under an innovative conservation model.
The funds are expected to contribute to reactivate Explora's tourism operations, which includes a portfolio of seven lodges located across remote and iconic destinations in Chile, Argentina, Peru and Bolivia. It will also promote employment and strengthen linkages with international markets and local suppliers.
The deal will contribute to IDB Invest's corporate climate finance targets by supporting a conservation-based business model that enables greenhouse gas emission reductions through biosphere conservation and carbon stock protection while contributing to increasing the climate resilience of the ecosystem in the face of increased droughts and climate-related forest fires.
The deal exemplifies a financially self-sustainable conservation model that catalyzes climate action and the protection of biodiversity and ecosystem services. The conservation of over 6,000 hectares in Torres del Paine will be made possible through the development of a privately owned reserve that will be open to the public, and whose land and infrastructure costs, as well as the operational expenses, will be covered by an endowment from the sale of shares.
The unique and innovative conservation model will be implemented in partnership with The Nature Conservancy and aspires to reduce the funding gap for conservation through the active participation of the private sector. In addition, the land will be legally protected under a Chilean law conservation agreement (Derecho Real de Conservación), so that it can be conserved in perpetuity.
IDB Invest will also provide advisory services related to gender, diversity and inclusion (GDI) to close gender gaps at the corporate level. The action plan will include a gender equality diagnosis using the WEP Tool (Women’s Empowerment Principles Gender Gap Analysis Tool) and training to corporate management on diversity matters with the aim of quantifying progress towards GDI improvement goals.
This deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13), Life on Land (SDG 15) and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB 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 $14.1 billion in asset management and 325 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.
Explora is a regional sustainable tourism exploration and hospitality company headquartered in Chile. Founded in 1993, it has seven lodges with approximately 200 rooms located in remote areas in Chile, Argentina, Peru and Bolivia. A pioneer in the eco-tourism concept, Explora has developed numerous award-winning lodges over the years and embraces the commitment to preserve and conserve nature and ecosystems. The Company’s operations are nature-based and focus on highly experiential sustainable tourism experiences while maintaining a strong commitment towards sustainability and conservation.