- The fund’s USD 10 million investment will be dedicated to investing in mid-size renewable energy projects in Panama.
Bogota and Luxembourg, December 21, 2023 – 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.
LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment.
As an impact investment fund advised by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany’s KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).
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About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
CIFI is a leader in infrastructure and energy financing across Latin America and the Caribbean. With involvement in over 200 transactions valued at more than US$2.0 billion, CIFI has mobilized over US$20 billion in capital since 2001. CIFI finances through its own balance sheet as a non-banking financial institution and through managed funds.
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