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Peru's first thematic bond

Peru's first

thematic bond

Peru is an investment-grade country, but there have been few thematic issuances to date. Banco Interamericano de Finanzas’ (BanBif’s) inaugural issuance sends a strong signal to the market: a new precedent has been set. 

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Investment

$20M

First subordinated tranche 

Greening the financial sector

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Thematic bonds can transform Peru’s capital markets. Not only do they deliver much-needed diversification, they attract sizeable international investment.  

 

They are also vital to the green transition. By lowering the cost of capital for sustainable projects, they can make longer-term investments—such as renewable energy or sustainable agriculture—more bankable and scalable.

 

We have been promoting the benefits of thematic instruments in Peru for several years when BanBif approached us.    

Landmark issuance

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Our first end-to-end engagement, we supported the bank from the beginning of its journey to issuance. This included the development of its first green bond impact report, making Banbif the first issuer to successfully complete LAGreen’s Green Bond Accelerator Program.  

Through our Advisory & Capacity Building offer, we helped the bank identify its eligible green portfolio and align it with the ICMA Green Bond Principles.

We supported the drafting and finalization of BanBif’s Green Bond Framework in July 2024, covering priority areas such as natural resource management, sustainable agriculture, energy efficiency, transportation and green buildings, among others.

We then anchored the broader program by financing the initial tranche. 

Road to a sustainable economy

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This engagement underscores our commitment to fostering sustainable finance and highlights the role of LAGreen as the go-to partner for catalyzing new issuances in the market.

BanBif’s issuance will be the first of many to support the transition to a more resilient, low-carbon economy. Financing will address many of Peru’s green priorities, including reducing GHG emissions, tackling biodiversity loss and addressing water-supply scarcity.

Based on the Fund’s support, the bank also has the capacity to issue new tranches of the bond, which can mobilize investment in the Peruvian sustainable finance market.

Furthermore, we are already seeing financial institutions and corporates laying the groundwork for their own thematic issuances. This is not a surprise. BanBif plays a central role in Peru’s financial ecosystem – where it leads, others follow. 

Fund information

The funds, sub-funds and securities described herein (or in any other linked or related website) are not being offered for sale to the public in the United States of America or in any other jurisdiction in which a public offer would be prohibited by applicable law. To the extent funds, sub-funds and securities described herein (or in any other linked or related website) are being offered in these jurisdictions (some of the funds, sub-funds and securities may not be offered in certain jurisdictions), they will only be offered by private placement to a limited number of qualified institutional investors in accordance with the applicable laws and regulations in these jurisdictions. Offers will only be made pursuant to a private placement memorandum approved by the funds. Institutional investors in these jurisdictions that wish to learn more about the funds, sub-funds and securities should contact the persons listed below for further inquiry.

Special notice as regards the European Fund for Southeast Europe, the Green for Growth Fund and the Latin American Green Bond Fund: 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 these funds (or their respective sub-fund(s)) can be offered or made.

All funds are managed or advised (as the case may be) by Finance in Motion Asset Management S.à r.l., a Luxembourg-based Alternative Investment Fund Manager directly supervised by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (CSSF).

  • Finance in Motion Asset Management S.à r.l.
  • 68, Bd de la Pétrusse,
  • L-2320 Luxembourg