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COP26: IDB Invest announces inaugural blue bond


IDB Invest will issue Latin America’s first blue bond, financing projects that support the expansion of clean water and sanitation in the region

The bank announced the issuance of the A$50 million ($37m) 10-year fixed-rate bond at the COP26 climate summit on Wednesday (3 November). It will specifically target projects in line with UN Sustainable Development Goal 6 and is intended to lay the groundwork for other blue bond issuances in the future.

The Reg S notes will mature in November 2031 and carry a coupon rate of 2.2%.

A total of 25% of the Latin American population lives on the coast, whilst 23 island countries in the Caribbean are susceptible to the effects of climate change. Future blue bonds from IDB Invest could target industries such as low-carbon and resilient ports, as well as the circular economy and sustainable tourism.

Though this will be the bank’s first blue bond, it has completed 5 bond issuances under its Sustainable Debt Framework since launch earlier this year – including a sustainability benchmark bond and 2 green bonds.

IDB president Mauricio Claver-Carone said: “Accelerating the blue economy will be a key driver in transitioning to an inclusive, low-carbon and resilient future. With this first blue bond, IDB Group is promoting a groundbreaking approach to financing climate action and attracting new investors to Latin America and the Caribbean.”

TD Securities is acting as lead manager for the blue bond issuance.

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