Private SectorThe private sector plays a key role in achieving the Sustainable Development Goals and in supporting solutions that allow everyone to succeed financially in a low-carbon world.
Additionally, international investors are increasingly requiring their portfolio companies to report on sustainability and climate change issues. Every sector in the market will need to transform and integrate climate change risks and opportunities to improve their business operations.
IDB Group, particularly through IDB Invest, seeks to provide private sector solutions in Latin America and the Caribbean by supporting companies and projects to achieve financial results that advance the region's sustainable development. Read More
IDB Invest deploys a diversity of financial and non-financial products that allow for the protection of assets while promoting sustainable evelopment, providing practical and innovative knowledge generated among other things by lessons learned to achieve an exponential impact.
IDB Invest deploys a variety of financial and non-financial products that allow for financial growth while also promoting sustainable evelopment, providing practical and innovative knowledge to achieve exponential impact.
IDB Invest has a two-pronged approach to support climate finance and accelerate the low-carbon and climate-resilient economy.
First, increase awareness of the urgency of climate change action. To do so, IDB Invest shares regional best practices in the region including for leadership in thematic bonds, clean energy projects and for supporting large corporations, financial institutions and sustainable infrastructure developers (social infrastructure, transportation, water and energy).
Second, to facilitate climate-friendly investing among more traditional asset managers and owners who seek to make smart investments in a region vulnerable to natural disasters and social tensions.
IDB Invest aims to "invest in reversing".
Through its advisory services offerings, IDB Invest adds value and creates shared value for climate and resilient projects and is also able to mitigate and prevent negative climate impacts.
Scope of ActivitiesSupport the private sector to move towards a low-carbon and climate-resilient economy through:
IDB Invest offers thematic financial products such as green bonds, green loans, trade and supply chain financing, guarantees, and capital investments, among others, both in US dollars and in local currencies.
IDB Group supports the development of regulatory frameworks and encourages innovative sectorial initiatives and sustainable financial instruments in the local and international markets.
Our experts apply their knowledge and experience to provide innovative solutions that enhance the impact of the project in four main areas:
Climate Change, MSMEs and Sustainability, Public-Private Partnerships, and Gender, Diversity and Inclusion.
Advisory services complement financial product offerings to businesses in various sectors such as banking, energy, manufacturing and agriculture by enhancing impact and helping to advance the Sustainable Development Goals (SDGs).
IDB Invest promotes smart solutions for sustainable business.
Companies are supported in implementing mitigation and adaptation strategies in their business operations. We work closely with clients in various sectors to support them in developing or improving their strategies, in taking advantage of new climate technologies, in identifying present and future climate risks, and in discovering and entering new markets.
IDB Invest offers climate-smart solutions that are customized to the specific needs of each client. Moreover, we help clients to innovate for climate action through differentiation strategies, piloting new technologies, and designing green financial products.
Additionally, IDB Invest also supports clients by developing assessments, such as market studies, risk analysis and energy, water and carbon footprint audits. We also conduct feasibility studies for energy storage, energy efficiency, sustainable project feasibility and offer ecosystem service valuation services.
Finally, we support financial institutions clients such as banks, microfinance institutions, leasing and factoring companies and asset managers to prepare for green bonds, climate finance loans, and external verifications of climate projects.
The objective is to strengthen investors’ capacity to invest in and develop sustainable business models with economic, social and environmental returns.
- Sustainable Business and MSMEs:
Given the importance of micro, small and medium-sized enterprises for countries throughout Latin America and the Caribbean, we look for opportunities to unleash MSME growth in every sector of the economy. IDB Invest partners with financial institutions, specialized funds, anchor companies and other intermediaries to increase access to finance for this underserved market and create an environment in which MSMEs across the value chain can take their businesses to the next level. The cumulative effect of this small-scale support will ultimately make a large-scale impact on development.
- Public-private partnerships (PPPs):
Our innovative solutions to support the development of PPPs takes advantage of IDB Invest's experience and leadership in financing these types of projects and in the development of sustainable infrastructure to improve the prospects for success for PPPs in the region. IDB Invest offer two kinds of support:
- IDB Invest advises governments on the design and implementation of bankable bidding processes, including the financial, legal, and socio-environmental structuring of tender documents and PPP contracts. We provide support during the bidding processes, during the definition process of winning bidders, as well as during the development and implementation of global- scale bid promotion.
- For the private sector, we support the presentation of private initiatives, aiming to create projects that have an impact on the development and mobilization of private capital.
- In supporting PPP development, we seek to implement sustainable solutions, including climate change mitigation and adaptation actions; gender, inclusion, and diversity factors; We also offer blended finance based on the needs of each initiative to improve the bankability of projects and the quality of regional infrastructure.
- Gender, diversity and inclusion:
We help companies identify the economic opportunity gained by integrating a strategy of gender equality, diversity, and inclusion into their business. We work with various sectors offering finance products and consultancy services to help them create more inclusive companies. We help companies:
- With their human capital strategy to attract and retain the best talent through human resource policy recommendations, diversity and inclusion training, and mentoring programs.
- With their market strategy to uncover potential opportunities and segments through market research, product and service development, and sales force training.
- With their value chain strategy, procurement policy and service contracting recommendations as well as suggestions for a more inclusive value chain, and with supplier training.
We have a specialized team assessing projects from a different perspective; they are aware of certain barriers in the market and can intervene by providing concessional financing for high impact projects through blended finance and advisory offerings.
Blended finance offers innovative financial instruments that address structural market, technology, or risk barriers. By meeting certain additionality criteria, blended finance could even support projects with more advantageous rates and provide accompanying advisory services.
Blended finance can be an innovative channel to pursue for projects with actual or perceived risks that are too high to be left to commercial financing alone. For example, a project may be feasible in economic terms, but it may face difficulties in accessing capital due to lack of familiarity with a particular technology, limited market experience, uncertain income streams or inadequate contractual arrangements.
Nowadays, it is just as important to choose the projects in which to invest as it is to choose the right partners to do so.
Our experience in climate and sustainable finance positions us not only as a strategic partner, but also gives a stamp of approval which helps to attract new investors.
IDB Invest channels new financial flows to clients and allows for a greater impact on both the project and the market.
Thanks to our deep roots and extensive experience in Latin America and the Caribbean, we can provide access to new opportunities for investors who wish to share the region’s progress. We have a project portfolio in many countries and in various sectors.
Our technical expertise is in matching the appropriate projects with the proper investors to meet different tenors, industry priorities, risk profile and return expectations.
We work with different market players such as international and regional commercial banks, institutional investors such as insurance companies and pension funds, social impact investors and sovereign wealth funds.
Working with IDB Invest can offer advantages to lenders and outside investors. For borrowers, access to an A/B loan - one that includes financing from IDB Invest and other investors - can result in obtaining their entire financial package in one place, usually with longer tenors than standard bank loans.
For investors, participation in an IDB Invest loan can offer certain financial advantages and mitigate their risks. From a broader perspective, the tangible and intangible assets we offer – a strong portfolio, deep technical expertise, field presence and a long-standing commitment as part of the IDB Group to creating social and environmental value and sustainable economic development – may give investors the confidence they need to operate in the region.
Sectoral ActivitiesWe support projects throughout the LAC region to promote the use of clean energy, implement climate-smart agriculture practices, increase sustainable infrastructure, and expand access to financing for MSMEs by supporting Financial Intermediaries.
We support banks, funds, microfinance institutions, leasing and factoring companies, among others, with investments and advisory services to facilitate the low-carbon economy and improve access to climate finance.Read More
- MMicrofinance Institutions
- Leasing y Factoring Companies
We offer innovative financial solutions for the development and operation of projects related to sustainable infrastructure, which promote an increase in access, quality and efficiency of renewable energy, transportation, water and sanitation, as well as social and health services.Read More
We invest in the construction and modernization of transport infrastructure and services for ports, roads, airports, subways and railways. We have the technical expertise and investment capabilities to ensure that our projects are sustainable and have a positive impact on the development of the region.
We work with projects in the following segments:
- Clean Energy
- Water and Sanitation
- Social Infrastructure
IDB Invest differentiates itself by investing in sustainable, competitive and innovative business models. It is involved in investments that advance sustainable consumption, improve efficiency and productivity, introduce renewable energy and enhance preparedness for the low-carbon and climate resilient economy.Read More
In addition to our financial product offerings, we also offer technical solutions and knowledge to make our clients more sustainable and competitive. Some examples of our offerings are energy efficiency audits, climate risk assessments and gender-integrated market strategies. We also assist in social and environmental certifications such as LEED with the aim of creating best practices for the market.
We offer advisory services and financing in the following segments:
- Telecommunications, Media and Technology
We work with various companies in the tourism industry to have a strong focus on social and environmental sustainability. We also finance sustainable hotels and resilient infrastructure.
Where it is implemented
IDB Invest and the IDB Group support private sector companies in Latin America and the Caribbean.
In addition to the headquarters in Washington (U.S.), In addition to the headquarters in Washington (U.S.), IDB Invest has offices in all member countries and also has a larger presence in its four Hubs.
The Hub of the Andean countries is in Bogota (Colombia). There are also offices in the other countries of the Andean Region.
BID Invest Colombia Carrera 7 No. 71-21, Torre B, Piso 19 Edificio Davivienda Bogotá. Tel: + (571) 325-7000
BID Invest Bolivia Av. 6 de Agosto # 2818, Zona de San Jorge La Paz. Tel: + (591) 2217-7739
BID Invest Ecuador: Avda. 12 de Octubre N24-528 y Cordero Edificio World Trade Center - Torre II, Piso 9, Quito. Tel: + (5932) 299-6900
Calle Dean Valdivia No. 148 Piso 10 Lima 27. Tel: + (511) 215-7800
Av. Venezuela, Torre Principal Banco Bicentenario, Piso 3, El Rosal, Caracas. Tel: +(58-212) 955-2900
The Hub of Caribbean countries is in Kingston, Jamaica. There are also offices in all Caribbean member countries.
40-46 Knutsford Boulevard 6th Floor, Kingston. Tel: + (876) 764-0815/0852
IDB Invest Bahamas: IDB House, East Bay Street Nassau. Tel: + (1-242) 396-7800
“Hythe” Welches Maxwell Main Road BB17068, Christ Church. Tel: + (1-246) 627-8500
Bourdon 389 Boite Postale 1321 Port-au-Prince. Tel: + (509) 2812-5000/5048
Peter Bruneslaan 2-4, Paramaribo. Tel: +(597) 52-1201
Trinidad and Tobago
17 Alexandra Street, St. Clair, Port of Spain. +(1-868) 822-6400
Central American Countries, Haiti, Mexico, Panama and the Dominican Republic
IDB Invest has offices in all Central American countries as well as nearby countries such as Mexico and the Dominican Republic. The Hub is located in Panama City (Panama) and there are offices in all the countries of the Central American Region.
Tower Financial Center, Piso 23 Calle 50 y Elvira Méndez. Tel: + (507) 206-0927
BID Invest Belice: 1024 Newtown Barracks 101 1st Floor Marina Towers Building, Belize City. Tel: +(501) 221-5300
Centro Corporativo El Cedral Edificio A. Piso 4 300 mts Este del Peaje Autopista Próspero Fernández Trejos Montealegre, Escazú Apartado postal 1343-1250 San José. Tel: + (506) 2588-8748
Calle Luis F. Thomen Esquina Winston Churchill Torre BHD, piso 10, Santo Domingo. Tel: +(1-809) 784-6400
Edificio World Trade Center Torre 1, 4º Nivel Calle El Mirador y 89 Avenida Norte San Salvador. Tel + (503) 2233-8900 ext. 2201
Colonia Lomas del Guijarro Sur Primera Calle, Tegucigalpa, Honduras. + (504) 2290-3500
Avenida Paseo de la Reforma N.º 222 Piso 11 Colonia Juárez, Delegación Cuauhtémoc México, D.F. 06600. + (52-55) 9138-6200
Boulevard Jean Paul Genie, de la Rotonda Jean Paul Genie 970 mts. al oeste (M/D) Managua. Tel: + (505) 2264-9140
Southern Cone Countries
The Hub of the Southern Cone countries is located in Buenos Aires (Argentina). There are also offices in the rest of the Southern Cone countries.
BID Invest Argentina: Esmeralda 130 Piso 17. C1035ABD, Buenos Aires. Tel: + (54 11) 4320-1800
Setor de Embaixadas Norte Quadra 802, Conjunto F, Lote 39 Asa Norte Brasilia. Tel: + (55 61) 3317-4200
Avda. Pedro de Valdivia 0193 Pisos 10 y 11 Providencia Santiago. Tel: + (562) 2431-3707/3719
Quesada 4616 esq. Legión Civil Extranjera – Piso 1 Asunción. Tel: + (595 21) 616-2320
Rincón 640 11.000 Montevideo. Tel: + (598) 2915-3696
Why is it crucial to drive the Private Sector towards Green Transition?There is a progressive shift in the private sector's perception of the importance of sustainability as a key attribute of business performance. In this regard, the financial impact related to extreme weather events, increasing regulatory pressures, the need to disclose climate-related risks that pose a threat to business, and the growing dissemination of information on the adverse effects climate change are key aspects that influence the market's assessment of companies.
For these reasons, companies that adopt sustainable strategies and practices, and take advantage of the business opportunities presented by the transition to the low-carbon economy improve their performance. Financial institutions are linking more sustainability criteria to their investments, thereby strengthening their portfolios, and reducing the risk associated with climate change. As such, the implementation of sustainability and climate strategies allows companies to conduct portfolio analysis, identify their niche markets and offerings and to position themselves for thematic bond issuances such as green and sustainable bonds in the international capital markets.
From the sustainable and climate aspect, IDB Invest is a key player in sustainability and climate finance. We strategically support projects and sectors that have the potential to catalyze sustainable economic development. Currently, at least 30% of all IDB Invest’s financing is climate finance.
In the financial sector, the Paraguayan bank Sudameris is leveraging new technologies to introduce new sustainable business practices. The financial institution uses Global Forest Watch, an online platform offering real-time data to monitor and be alerted if a fire threatens any of its investments, or if a timber client is trading in species from protected areas, information that is of great value for its risk management plans.
La Rotonda is an Argentine platform that brings together producers and rural contractors in what some have called an "uberization of the countryside”. This initiative allows producers to offer or request agricultural services directly through georeferencing and prevents them from having to go through intermediaries each season.
Sustainable infrastructure can be significantly enhanced by digital innovation. In transportation, as part of a new collaboration with Waze, IDB Invest is working with Autopistas Urbanas (AUSA) in Argentina, to provide real-time accident data and traffic statistics, in order to better understand the impact on road safety.
Trinidad and Tobago Mortgage Finance Company (TTMF)
IDB Invest executed a partial credit guarantee to support TTMF’s bond issuance with the objective of expanding its mortgage offering and continuing to provide financial products focused on the specific needs of the most disadvantaged populations.
IDB Invest offered long-term financing to Millicom through the subscription of a bond to modernize and expand 3G and 4G networks in Bolivia, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Paraguay.
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