LAGreen invests in CIFI green bond to finance renewable energy projects

Bogota and Luxembourg
December 21, 2023

LACIF is an anchor investor and also provides technical assistance to the LAGreen Fund

LAGreen Fund, Latin America’s premier green bond fund advised by Finance in Motion and Santander Asset Management, is making its inaugural investment of USD 10 million in a green bond issued by the Corporación Interamericana de Financiamiento de Infraestructura (CIFI), a financial institution dedicated to providing debt financing for mid-sized green infrastructure projects in Panama and the region.

In 2019, CIFI launched a revolving Green Bond program of USD 200 million to bolster the company’s commitment to environmental sustainability. LAGreen’s investment allows CIFI to continue deploying investments under this program. It also aligns with the fund’s mission to foster a positive impact on the climate, expanding its portfolio in renewable energy projects. In this case, the investment is expected to focus on the country’s wind and solar energy generation. Panama has developed a National Energy Plan that commits to sourcing 15% of its energy from renewable energy sources by 2030 and 50% by 2050.

LAGreen Chairperson Johannes Scholl said: “CIFI has a unique capacity to provide debt-finance for mid-size clean infrastructure projects and has a long track record of cooperating with development finance institutions and mobilizing funding from the private sector. This transaction will have an important impact in the reduction of greenhouse gas emissions.”

CIFI’s CEO César Cañedo-Argüelles said: “We are delighted to partner with LA Green in financing responsible and impactful infrastructure to support sustainable development in the region. LA Green’s investment is opportune, providing us with funding when the debt capital markets are tightening, and the climate change imperative intensifies.”

The bond issuance complies with the International Capital Market Association’s (ICMA) Green Bond Principles (GBP). It holds a Second Party Opinion (SPO) issued by Sustainalytics, further confirming CIFI’s commitment to sustainability and transparency in the projects it finances.