After the Finance In Common Summit held in November 2020, the Alliance of Subnational Development Banks (SDB) for Latin America was created, representing the second regional chapter after the creation of the Alliance for Africa in 2016. The initiative is led by the Bank for Development of Minas Gerais (BDMG), the French Development Agency (AFD), the Global Fund for the Development of Cities (FMDV) and the Institute for Sustainable Development and International Relations (IDDRI). Through the creation of this Alliance, the aim is to enhance the strategic role of the Subnational Development Banks to finance the implementation of the Global Agendas in cities and territories of Latin America.
The SDBs play a role as key institutions to provide financing to local and regional governments for the provision of public services and infrastructure. In addition, as policy makers, through their strategies and as executing institutions of national urban development, the SDB policies take advantage of developing and promoting national policies aligned with the goals of the global agendas, integrating qualitative and quantitative objectives, standards and methodologies of report on your operating procedures. On the other hand, as market makers, SDB collaborate on the development to consolidate local and urban financial markets, developing the environment conducive to urban investment, improving local capacities to formulate investment-worthy projects, developing a solid portfolio of projects, promoting blended financing, and partnering with international, national and private financial entities.
Among the main objectives of this Alliance are:
● Establish common bases for initiatives, investments and portfolios with the 2030 Agenda and its Sustainable Development Goals (SDG) and the Paris Agreement.
● Promote sustainable investments in urban and territorial development projects and boost urban and municipal financial markets.
● Create a strategic space for dialogue with peers, development institutions, governments, municipalities, and technical and financial partners in the region.
● Enhance the strategic role of the SDBs and the Alliance’s contribution to the Global Agendas in international forums.
On April 6th, 2021, the creation of the Alliance was officially announced at an event to offer the possibility to Latin American SBDs to join the initiative.