IDB Invest Releases Inaugural Sustainable Bond Allocation and Impact Report
- IDB Invest completed its 2021 funding program entirely with sustainable bonds
- Report provides investors with information to assess the impact of their ESG investments
IDB Invest completed its $1.6 billion funding program for 2021 issuing only sustainable bonds under its Sustainable Debt Framework, according to its inaugural Sustainable Bond Allocation and Impact Report.
The program included $1 billion of sustainability bonds, $424 million of social bonds and $186 million of green bonds to finance green and inclusive private sector projects across Latin America and the Caribbean. Among these are Mexico’s first gender bond, issued by a supranational issuer, and the first blue bond issued in the region.
“We are committed to investing in sustainability and walking the talk as a leading sustainable issuer,” said James Scriven, CEO of IDB Invest. “Investors want to know the development impact actually achieved through their ESG investments. We are on track to delivering these results through this inaugural report.”
The report provides bond investors with essential information to assess the impact of their investment. It includes data about IDB Invest’s sustainable bonds, and most importantly about the projects financed with the bond proceeds, including impact indicators and case studies of eligible projects. An independent review by Sustainalytics confirmed the compliance of the report with the use of proceeds criteria and reporting commitments in IDB Invest’s Sustainable Debt Framework.
IDB Invest allocated the proceeds of the $1.6 billion sustainable bonds issued in 2021 to 54 projects, with the bulk of the funding benefiting projects in the categories of Socioeconomic Advancement and Empowerment ($799 million), Renewable Energy ($387 million) and Employment Generation ($257 million). Among the impact metrics reported are over 2.5 billion tons of emission reductions, 570,959 small and medium enterprises (SMEs) financed, 5.3 million MWh of renewable energy generated, and 413,551 loans disbursed to women-led SMEs.
Sustainable investments have soared in recent years, with global investments in ESG expected to increase to $50 trillion by 2025, from about $35 trillion in 2020. In Latin America and the Caribbean, green, social, and sustainable bonds more than doubled in two years, with a market size of $48.6 billion. Momentum has been driven by the Paris Agreement’s overall long-term decarbonization objectives.
The report marks a key milestone for IDB Invest as a pillar of its Sustainable Debt Framework. Established last year, this framework allows IDB Invest to issue green, social and sustainability bonds, and develop its offering as a supranational bond issuer with thematic bonds that best reflect its overall approach to impact and ESG. The framework is aligned with the Green Bond Principles and the Social Bond Principles published by the International Capital Market Association.
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 $15.3 billion in asset management and 375 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.