LAGreen is a pioneering impact fund that aims to support positive climate, environmental and societal benefits through the promotion of Latin America’s green bond market. The fund is structured as a blended finance vehicle, with starting capital provided by the European Union and the German Ministry for Economic Cooperation and Development, which is leveraged to mobilize funding from the private sector.
Through its investments and technical assistance, the fund improves general access to financing for green projects, providing much-needed capital to scale the green economy by supporting financial institutions and real economy issuers to issue green bonds and incorporate a sustainability focus.
Eligible projects include, but are not limited to, renewable energy, energy efficiency, pollution prevention and control, and to the environmentally sustainable management of natural resources and land use.
LA Green’s approach consists of the following pillars:
- supporting first-time issuers of green bonds
- promoting the high-impact credentials of green bonds
- fostering the development of a more dynamic green bond market in Latin America
- connecting international and private investors with green bond issuers in the region
- promoting LAGreen’s principles and values among relevant stakeholders
Financing Instrument: Bonds, Loans, Technical Assistance
In 2023, LAGreen invested USD 10 million in a sustainable bond issued by Banco de Bogotá. In 2022, the Fund partnered with the International Finance Corporation (IFC) as lead investor, and Symbiotics Investments in a landmark USD 79 million blue bond issued by Banco Internacional in Ecuador.
Recipient countries/ regions/ country groups: LAGreen invests across Latin America and the Caribbean
Recipient entities: Businesses, Financial institutions, Local and regional development banks, Governments
LAGreen pursues a holistic investment strategy and is willing to support a variety of issuers and bond-types in order to achieve a high green/social impact:
- Financial institutions
- Local/regional development banks
- (Sub-) sovereigns
- Green bonds
- Sustainability bonds
- Social bonds
- Sustainability-linked bonds
- Green loans
The eligible use of proceeds for green bonds supported by LAGreen can include, but are not limited to:
- Renewable energy
- Energy efficiency
- Climate change adaptation
- Biodiversity conservation
- Sustainable use of natural resources and land use
- Green buildings
- Sustainable transportation
- Sustainable water, wastewater management, and sanitation
- Circular economy
LAGreen invests in green bonds that are issued in accordance with the International Capital Market Association’s (ICMA) Green Bond/Social Bond Principles or comparable standard and contribute to international development priorities.
For more information about how the fund works, or to seek partnership opportunities, please contact a LAGreen representative via the form on the website: https://lagreen.lu/contact/