Impact

Sorry, in respect of the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution, offer, sale, transfer or resale would be prohibited by applicable law, no investment in notes/shares or other instruments of the Fund (or its sub-fund(s)) can be offered or made.

Latin America’s resources are both a source of economic growth and essential for our planet’s survival. But they are under threat from growing demand and unsustainable production practices.

As a result, the region is highly vulnerable to the effects of climate change, ecosystem degradation and the depletion of natural resources – adaptation and mitigation are essential.

Developing a more sustainable and resilient economy will be complex. And we don’t claim to have all the answers. But to us, connecting international capital markets to the Latin American green bond market could be the key.

Few in the region have the specialist expertise to do this.

We have the local networks and knowledge to shape new green markets.

Generating measurable impact

25,000

Tons of CO2 e emissions avoided per year*

8,000

M3 water treated/saved*

69,000

MWh renewable energy generated per year*

94,000

Tons of waste reduced, reused or recycled*

44,000

M2 sustainable construction financed*

Figures as of Q4 24 | *modelled by Finance in Motion based on primary reporting / 3rd-party data

Contributing to the following SDGs

Shaping a dynamic green bond market

Supporting new issuers and strengthening the market

While the amount of green bonds issued annually is growing, expansion is limited to sectors with existing access to capital markets. Future growth depends on a dynamic and diverse green bond market that attracts international investors and is accessible to a wide variety of issuers.

Our solution combines dedicated financing with tailored Advisory & Capacity Building services.

LAGreen’s blended finance structure is designed to attract both public and private capital, meaning we can direct more financing to a greater number of green-bond issuers.

In parallel, local specialists in our Advisory & Capacity Building team give first-time issuers the tools they need to come to market and promote high-impact credentials by actively engaging with relevant stakeholders.

Read more about our Advisory & Capacity Building services.

Advisory & Capacity Building

Channeling resources into sustainable growth

We focus on bonds that finance renewable energy, the circular economy, and sustainable infrastructure (including water management and transport), among other green projects. We also finance businesses looking to sustainably manage natural resources and land.

These activities have been proven to finance the transition to more sustainable economic models across the region. In addition, they also support jobs and sustainable economic development.

Issuers can explore our investment criteria here.

Bond issuer criteria

“LAGreen’s support through the issuance of the Sustainable Subordinated Bond has been of great value for Banco de Bogotá to continue promoting sustainable financing in the country.”

Diana Barón, Sustainable Finance, Director at Banco de Bogotá

Our recognised impact management and measurement system

Our impact management

Assessing LAGreen’s positive impact is crucial, providing insights that inform our strategy.

We track and manage progress based on a set of key indicators in line with our Theory of Change. These help us focus our impact as we work with the issuers in our portfolio to serve businesses. It also reflects the indirect impacts on or through the investees’ clients.

Read our Theory of Change

First-class management make us a BlueMark Practice Leader

In 2023, the Fund’s manager, Finance in Motion, underwent an independent verification by BlueMark, a leading provider of impact intelligence. Our impact management system ranked ‘advanced’ (the highest ranking possible) against the Principles and current industry best practice.

We have received the highest score in all eight dimensions of the Principles and have been designated as a ‘Practice leader’ by BlueMark for the third year in a row.

Adhering to international standards and best practice

Managing potential ESG risks

Impact can only be sustainable if we manage and mitigate possible negative impacts. We prioritize avoiding, minimizing and mitigating environmental, social and governance (ESG) risks through comprehensive ESG management systems and relevant procedures.

We identify ESG risks and assess the capacity and commitment of our investees to address and mitigate these. Following investment, we monitor the investee’s ESG performance regularly.

Sustainability-related disclosures

LAGreen discloses in line with requirements stipulated by Article 9 of the Sustainable Finance Disclosure Regulation (SFDR). Please find the entity-level disclosures on the consideration of principal adverse impacts (PAI) of investment decisions on sustainability factors, as well as the integration of sustainability risk, on the AIFM’s website.

• Statement on sustainable investment objective for a description of the sustainable investment objective of the fund and its (investment) strategy to attain that objective.