This green bond issuance by COFIDE was placed in the Lima Stock Exchange (BVL), the first of its kind to be traded. The auction created a demand that amounted to 140 million soles, the local currency. Significantly, investors were willing to buy Peruvian debt in soles.
The issuance was structured with the technical support of the Inter-American Development Bank, through the Connectivity, Markets and Finance Division (CMF), with resources provided by the State Secretariat for Economic Affairs (SECO).
This bond issuance will be supporting the implementation of projects aiming at climate change mitigation, by investing in renewable energy and small scale hydraulic energy generation.
The green bond issuance was assessed by Vigeo, an international firm that provided a second-party opinion assessing on the sustainability and green credentials and management of the bond, based on due diligence on the issuer and the issuance. Further, the issuance is aligned with the Green Guide of the BVL, published last May, and is in accordance with the Green Bond Principles (GBP), the voluntary process guidelines for issuing green bonds, a framework for issuers under the guidance of the International Capital Market Association (ICMA).
“In the Inter-American Development Bank, we are building on efforts so that countries in the region can tap private resources in key sectors, and, at the same time, contribute to developing their financial markets, by providing support to structuring financial instruments in local currencies. Thus, this emission by COFIDE is exceedingly important to achieve that goal” stated Viviana Caro, the IADB representative in Peru