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 at the UN Climate Change Conference (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.
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. 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.