Impact Report 2025

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Expanding our Footprint, Diversifying our Portfolio

Throughout the region, the regular bond market had a strong performance, but thematic bonds had a sharp slowdown in 2025.

Despite these challenges, the year was pivotal for the LAGreen Fund, marked by disciplined expansion and strategic portfolio diversification across Latin American markets.

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This was evident through our broadened reach, by diversifying both issuer types and financial instruments, while successfully entering and establishing a presence in new markets across the region.  

Our commitment to thematic bonds deepened through our investments in El Salvador and Mexico. In Mexico, we invested in a publicly issued corporate bond supporting sustainable and social housing development, making this our first direct corporate investment. In this transaction, LAGreen played an anchor investor role, accompanying since the early stages of development of the bond. This investment demonstrates our versatility to operate across both local and public capital markets while upholding our impact objectives.  

A significant milestone for the fund was our first primary market investment in Brazil into a deforestation free cocoa business. This was achieved through a local market securitized green instrument known as an Agribusiness Receivables Certificates (CRA). This transaction illustrates LAGreen’s flexibility and willingness to deploy capital where it is most needed. By investing through a local instrument, we showcased our ability to navigate diverse market structures and unlock opportunities often overlooked or unavailable to international investors.  

Our Advisory & Capacity Building services continue to build on the foundation of the fund’s “Impact Incubator.” This program supports issuers from inception to post-issuance reporting, and we successfully facilitated the delivery of three issuers’ first impact reports. This included the Banco Nacional Costa Rica Blue Bond impact report, underscoring the value of our capacity-building initiatives in strengthening transparency and market credibility.

Collectively, our investments and advisory services affirm LAGreen’s capacity to operate across multiple market layers, from locally structured instruments to competitive public offerings, demonstrating adaptability and geographic expansion, while maintaining investment rigor.  

Karl von Klitzing, Board Chair
Myriel Frische, Portfolio Manager

Content

Our impact so far

Portfolio and financial indicators1

Portfolio and financial indicators<sup>1</sup>
0
Co-investments3

Impact indicators2,4

0
Tons of CO2e emissions avoided per year
Equivalent to taking 5,400 cars off the road per year
0
M3 water treated/saved5
The yearly drinking water for 900,000 people
0
MWh renewable energy generated per year
Clean energy to meet the average yearly needs of 22,000 households in Guatemala
0
Tons of waste reduced, reused or recycled5
Equivalent of 8,500 garbage trucks
0
M2 sustainable construction financed5
Equivalent to the size of 3,800 parking spaces
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Breakdown

Funding per share class1

Use of proceeds (“UoP”)2

Green Use of Proceeds distribution by categories (86%)2

  1. Data from outstanding portfolio as at 31 Dec 2025.
  2. Data from reported portfolio as at 31 Dec 2025. Figures are modeled by the fund based on the most recent impact reports published by issuers and third-party data.
  3. Total funding mobilized in bonds in which LAGreen invested, provided advice and/or built capacity.
  4. Given the thematic focus of each bond, impact metrics are aggregated from bonds which have allocations to the sectors – commonly one to three bonds — rather than the entire cohort of bonds that have reported.
  5. Cumulative figures since the fund’s inception.

All currency data is in USD

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As a bond investor, the fund relies primarily on reporting made public by the issuers for attaining impact data. Impact KPIs are assessed and aggregated across the fund’s portfolio and displayed cumulatively since inception. Our in-house team of impact experts critically reviews the information made available by the issuers, before the data is applied to calculate the impact KPIs.

To consistently support the quality of impact reporting by issuers, and ensure solid data for the fund’s own assessments and reporting, LAGreen continuously offers programs to enhance issuers capacity to prepare impact reports and to develop methodologies in line with industry standards and scientific evidence to estimate impact.

// argentina > TODO: add "shape" class to make it clickable

Investing across Latin America

Bolivia
0
of advisory and capacity building project distribution
Brazil
0
of investment portfolio
0
of advisory and capacity building project distribution
Colombia
0
of investment portfolio
0
of advisory and capacity building project distribution
Costa Rica
0
of investment portfolio
0
of advisory and capacity building project distribution
Mexico
0
of investment portfolio
0
of advisory and capacity building project distribution
Panama
0
of investment portfolio
0
of advisory and capacity building project distribution
Ecuador
0
of investment portfolio
0
of advisory and capacity building project distribution
Peru
0
of investment portfolio
0
of advisory and capacity building project distribution
Honduras
0
of advisory and capacity building project distribution
Dominican Republic
0
of advisory and capacity building project distribution
Nicaragua
0
of advisory and capacity building project distribution
Paraguay
0
of advisory and capacity building project distribution
Guatemala
0
of investment portfolio
0
of advisory and capacity building project distribution
El Salvador
0
of investment portfolio
0
of advisory and capacity building project distribution
Data as at 31 Dec 2025
Data as at 31 Dec 2025

Video Spotlight - Azucarera El Viejo

One year after Banco Nacional Costa Rica’s inaugural blue bond, the first of its kind in the country, its impact is beginning to take shape far from financial markets — in the fields and water systems of Guanacaste. In one of the driest regions, where climate pressure and water scarcity threaten agricultural production, Azucarera El Viejo is showing what blue finance can achieve on the ground.

With bond-backed investments in water-saving technologies, treatment systems, and biodiversity measures, the company has cut water use by more than 30% while strengthening resilience, clean energy generation, and ecosystem protection. Its progress offers a compelling glimpse of how thematic bonds can drive measurable environmental change.

Impact Stories

Snapshots

Costa Rica’s Blue Bond Momentum

One year after Costa Rica’s inaugural blue bond, its reported impact is offering an early view of how water-smart agriculture can sustain productivity while strengthening environmental stewardship.

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Green Bonds Gaining Ground in Brazil

In 2025, LAGreen entered the Brazilian market with an investment of BRL 20.8 million (USD 3.8 million) in a Green CRA issued by GENCAU, as part of a broader BRL 80 million transaction:

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Building Markets, Not Just Portfolios in Peru

LAGreen’s presence in Peru reflects a broader strategy: not only investing in thematic bonds but actively helping to shape the market that enables them.

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Advisory & Capacity Building

As LAGreen continues expanding its footprint across Latin America, Advisory & Capacity Building remains central to diversifying the pipeline of future issuers. In 2025, our services focused on delivering tailored trainings to financial institutions and corporate issuers across multiple countries, laying the foundation for future thematic bond issuances.

Participants strengthened their understanding of thematic bond structures, eligibility criteria, and reporting requirements, enabling institutions from new markets and sectors to advance toward potential issuances.

Beyond awareness building, LAGreen supported institutions in identifying eligible projects and measuring the bonds’ impact. This hands-on approach helped broaden the range of potential issuers and contributed to a more diversified pipeline across geographies and sectors.

Advisory & Capacity Building featured highlights

Jan - Dec 2025
May, Nov 2025
Nov 2025

Successfully supported potential issuers in four countries through training on the green bond issuance process, of which the majority have taken concrete steps towards an issuance. (Jan-Dec)

  • Partner: LAGreen
  • Region: Latin America

Publication of Guatemala's first Sustainability Bond Report from Banco Promerica Guatemala (May) and Banco Nacional de Costa Rica’s first blue bond report (November)

  • Partner: LAGreen
  • Region: Latin America

Publication of the Sustainable Debt State of the Market Report for Brazil (November)

  • Partner: LAGreen, Climate Bonds Initiative
  • Region: Latin America

How we manage impact

Upholding global standards in impact management

Our approach follows the Operating Principles for Impact Management and leading industry standards that guide the fund’s impact strategy and how thematic bond investments are assessed and monitored.

We do an ex-ante assessment for every investment to highlight strengths and guide advisory activities with investees. Throughout the year, we also engage with peers and industry groups to stay aligned with evolving best practices. This commitment was reinforced by the third independent Impact Principles verification of the Fund Manager last year, which confirmed the strength and credibility of our impact management systems.

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Shareholders

European Union KFW Federal Ministry for Economic Cooperation and Development

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Get in touch

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