Latin American Green Bond Fund (LAGREEN)

General environmental protection
-Regional Central America-
COUNTRIES
-Regional Central America-, -Regional Latin America-
DATES
14/12/2020 - 31/05/2030
TOTAL BUDGET
€ 450 000 000
TOTAL LAIF CONTRIBUTION
€ 15 000 000
SECTOR
General environmental protection
TYPES OF SUPPORT
Financial Instruments
Technical Assistance
DESCRIPTION

 

LAGREEN is the first green bonds fund in Latin America. Its main purpose is twofold: to finance climate- and resource-friendly investments and to mobilise local and international private capital towards the issuance of more green bonds in Latin America.

The specific objectives of this fund are:

  • to mobilise additional funding for Nationally Determined Contributions (NDC) implementation;
  • to push local capital market development towards a transition to sustainable finance – thereby fostering transparency and long-term commitments in financial and economic activity;
  • to reach a substantial greenhouse gas emissions mitigation and / or climate change adaption impact.
RESULTS
  • It is foreseen that the LAGREEN will have its main impacts on greenhouse gas abatement, green local capital markets and the economy as a whole.

  • With regards to climate impact, the current projection reaches an estimate of 5,160,000 CO2e tons avoided until 2029.

  • On the greening of capital markets it is estimated that every USD invested by the LAGREEN will lead to private sector investment of another USD 3, thereby mobilising USD 1.5 bn. and leading to a total investment volume of USD 2bn in Green Bonds.

  • On the level of the LAGREEN itself it is expected that at least 40% of its financing will stem from private sector financiers. The LAGREEN intends to support the development of local currency green bonds and the development of local capital markets. 

  • Regarding the economy as a whole, through its investments into green infrastructure and especially transport infrastructure the Fund will reach a high number of final beneficiaries, estimated at 8.4 million and will create up to 1.593 jobs in the construction and 6.373 in the operations phase of the projects. Through the jobs created and maintained there will be an indirect element of poverty alleviation impact.

LEAD FINANCING PARTNER
CO-FINANCING PARTNERS
CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS