PRIVATE SECTORThe private sector has a key role in achieving the UN's Sustainable Development Goals and in supporting solutions that allow everyone to progress economically in a low-carbon world. Investors increasingly require companies in their portfolios to report on sustainability and climate change issues.
Each market sector will need to transform and improve its business models by integrating climate change risks and opportunities.
The IDB Group, particularly through BID Invest, seeks to provide private sector solutions in Latin America and the Caribbean by supporting companies and projects to achieve financial results that expand the region's sustainable development.
BID Invest deploys a diversity of financial and non-financial products that allow for the protection of assets while promoting sustainable development, providing practical and innovative knowledge generated among other things by lessons learned to achieve an exponential impact.
First, to raise the perception of urgency about climate change actions. To this end, it presents the best practices in the region such as leadership in thematic bonds, clean energy projects as well as support to large corporations, financial institutions and sustainable infrastructure developers (social, transportation, water and energy).
Second, to increase the attraction of capital from traditionally conservative investors, who seek to make smart investments in a region vulnerable to natural disasters and social tensions.
BID Invest aims to "Invest in Reverse".
The projects in which it participates contribute through a combination of advisory services components to mitigate past and present environmental damage and also to add and share value for the long term.
SCOPE OF ACTIVITIESTo prepare the private sector to move towards a low-carbon and climate-resilient economy, we offer:
Our experts apply their knowledge and experience to provide innovative solutions that enhance the impact of the project in terms of:
Climate & Resilience, Sustainability & MSMEs, Public-Private Partnerships and Gender & Diversity.
Offers added value to sustainable projects, increasing the impact, strengthening ODS and complementing financial products in different sectors such as banking, energy, agriculture or MSMEs.
IDB Invest promotes smart solutions for sustainable business.
Companies are assisted to implement mitigation and adaptation strategies when doing business. We work closely with clients in various sectors to develop or rethink their strategy, to exploit the full potential of new climate technologies, to identify present and future climate risks, and to discover and enter new markets. The advice offered to our clients also includes climate-smart solutions, adapted to the specific needs of each client.
Climate innovation is implemented with differentiation strategies, testing of new technologies, pilot projects, and design of green financing products.
We also develop assessments, such as market studies, risk analysis and energy and environmental audits, water and carbon footprint analysis.
Feasibility studies of energy storage, energy efficiency, sustainable project feasibility and ecosystem service valuation are also carried out.
A special case is the work being done on certifications, green thematic bonds, climate finance loans and external verification of climate projects.
The final intention is that the investments will help develop sustainable business models from an economic, social and environmental point of view.
- Sustainable Business and MSMEs:
Due to the importance of micro, small and medium-sized enterprises in Latin America and the Caribbean countries, we seek opportunities to unleash the growth of MSMEs in each economic sector. IDB Invest partners with financial institutions, specialized funds, anchor companies and other intermediaries to increase access to financing for this underserved market and creates an environment in which MSMEs throughout the value chain develop sustainably. The cumulative effect of this small-scale support will ultimately have a large-scale development impact.
- Public-private partnerships (PPPs):
Our innovative solution to support the development of PPPs takes advantage of IDB Invest's experience and leadership in financing this type of projects and in the development of sustainable infrastructure, with a view to improving the prospects of successful PPPs in the region. We offer two types of support:
- We advise governments on the design and implementation of bankable bidding processes, including the financial, legal, and socio-environmental structuring of bidding documents and PPP contracts; support during bidding processes; development and implementation of global bidding promotion; and support during the process of defining winning bidders.
- We support the private sector on the presentation of Private Initiatives, with the aim to generating projects with impact on development and on the mobilization of private capital.
We seek to implement sustainable solutions in our support to the development of PPPs, incorporating actions of mitigation and adaptation to climate change, elements of gender, inclusion and diversity, as well as mixed financing according to the needs of each initiative, in order to improve the bankability of the projects and the quality of the infrastructure.
- Gender, diversity and inclusion:
We help companies to identify the economic opportunity gained by integrating a strategy of gender equality, diversity and inclusion into the business. We work with different sectors offering them advisory services that will help them build more inclusive businesses. We support businesses in their:
- Human capital strategy to attract and retain the best talent through recommendations to human resource policies, diversity and inclusion training, and mentoring programs.
- Market strategy to detect opportunities and potential segments, through market studies, product and service development and training the sales force.
- Value chain strategy, with recommendations for procurement and service contracting policies, actions for an inclusive value chain and supplier training.
We offer various financial products such as green bonds, green loans, trade and supply chain financing, guarantees, capital investments, among others, in US dollars and local currencies.
Promotion of regulatory frameworks and financial instruments for the development of a sustainable, international and local market including green and thematic bonds.
We have a specialized team assessing projects from a different perspective, we are aware of certain barriers in the market and thanks to blended financing combined with advising we can intervene by directing concessional financing in high impact projects.
It offers innovative financial instruments that allow structural market/technology/risk barriers to be overcome. By meeting certain additionality criteria, it could even support projects with more advantageous rates and even accompany them with advisory services.
For example, a project may be feasible in economic terms, but it may face difficulties in accessing capital due to unfamiliarity with a particular technology, limited market experience, uncertain income streams or inadequate contractual arrangements.
Nowadays, it is just as important to choose the projects on 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 to incorporate a catalytic effect into projects, attracting 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 in the growth of the region. We have a project portfolio in many countries and in different sectors.
Our technical expertise is in matching the appropriate projects with the proper investors to meet different time horizons, 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.
SCOPE OF ACTIVITIESWe support projects throughout the LAC region to promote the use of clean energy, implement climate-smart agriculture, strengthen sustainable infrastructure and expand access to financing for MSMEs by supporting Financial Intermediaries.
We support banks, funds, micro financial intermediaries, leasing and factoring companies, among others, with investments and advice to boost a low carbon economy and access to climate financing.Read More
- Micro financial intermediaries
- Leasing y Factoring
In addition, these supports are adapted to the needs of each bank or entity, offering advice to conduct an analysis of the green portfolio, prepare the entity in certifications and training to complement the financing that drives a low carbon economy.
We offer innovative financial solutions for the development and operation of projects related to sustainable infrastructure, which promote an increase in coverage, quality and efficiency of services in the areas of Clean Energy, Transportation, Water and Sanitation as well as Social and Health.Read More
We support the construction and modernization of transport infrastructure and services in areas such as ports, roads, airports, subways and railways. We have the technical expertise and financial resources 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 betting on sustainable, competitive and innovative business models. It is involved in investments that extend sustainable consumption, improve efficiency and productivity, introduce renewable energies and improve in terms of mitigation.Read More
To our financial offer we add technical advice and knowledge to make our clients more sustainable and competitive. These services can include: energy efficiency, historical heritage, climate risk and gender equality. We also assist in social and environmental certifications such as LEED with the aim of creating a demonstration effect and showing excellence.
We offer consulting and financing in the following segments:
- Telecommunications, Media and Technology
We work with companies across the spectrum of the tourism and accommodation chain that aims to have a strong focus on social and environmental sustainability. It finances sustainable hotels and climate change-resilient infrastructure.
WHERE IT IS IMPLEMENTED
The Private Sector is supported by IDB Invest and the IDB Group throughout the LAC region.
In addition to the headquarters in Washington (U.S.), IDB Invest operates offices in all member countries and additional reinforcement in four Hubs created in the region to facilitate local support.
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
BID 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 of productive activities 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 sustainable criteria to their investments, strengthening financial and credit assets in their portfolios, and reducing the risk associated with extreme weather events and adverse impacts on the ecosystem. In that sense, the implementation of sustainable and climate strategies within each organization, allows to prepare the entities in the portfolio monitoring and in the identification of business niches, but also allows them to position themselves in the international capital markets to offer thematic bonds as green or sustainable.
PROJECTS PER SECTOR
From the sustainable and climate aspect, IDB Invest is positioning itself as a key player, strategically supporting projects and sectors that may catalyze the implementation of substantial sustainable economic and social development. Currently, IDB Invest commits 30% of its investments to Climate Finance. Below you will find projects being implemented in the last year:
The Rotonda ▾
Autopistas Urbanas ▾
Mortgage Finance Company ▾
Pirapora Solar Energy ▾
In the financial sector, the Paraguayan bank Sudameris has been able to adapt the information provided by technological innovation to its business. The financial institution uses the online platform of Global Forest Watch, which offers real-time data to know 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.
In Argentina, there is a platform called La Rotonda that brings together producers and rural contractors in what some have called a "uberization of the countryside. This initiative allows a producer to offer or request agricultural services in a direct and geo-referenced way and to save intermediaries in the contracting of each agricultural campaign.
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
IDB Invest executed a partial credit guarantee to support the issuance of a bond backed by mortgages from Trinidad and Tobago Mortgage Finance Company in order to expand its mortgage offering and continue to provide financial products focused on the specific needs of the most disadvantaged populations.
Long-term financing to Millicom, a telecommunications company present in several Latin American countries, 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.
Pirapora Solar Energy
IDB Invest provided a loan guarantee to support a solar energy project in Pirapora, in the state of Minas Gerais. The guarantee supported the issuance of long-term infrastructure bond in the local market, including a "bridge loan" provided by IDB Invest for the construction of a second phase of the complex.
PARTNERS ON THE GROUND
- Mantente informado sobre el financiamiento verde
IDB Invest supports social and priority housing through the first social bond issued by a private entity in ColombiaIDB Invest, a member of the IDB Group, has subscribed to a social bond issued by La Hipotecaria Compañía de Financiamiento S.A. (La Hipotecaria), for 52 […]