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Peru's first thematic bond

Peru's first

thematic bond

Peru is an investment-grade country which has seen some of the first thematic (green) bond issuances in the region over the years. However, more recently, the market dynamic has reduced to a dependency on sovereign and public issuances.  With support from our LAGreen Fund, Banco Interamericano de Finanzas (BanBif) has issued its inaugural subordinated green bond, a groundbreaking, first-of-its-kind transaction that signals a new era for Peru’s sustainable finance landscape.

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Investment

$20M

First subordinated tranche 

Why We Invested

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As one of the fund’s priority countries, our work in Peru reflects a diversified engagement. This includes market research, capacity building, and engaging with new issuers. BanBif was one of the first actors in the overall country's engagement, and, for LAGreen, it represented the first end-to-end engagement with an issuer. 

 

The issuance marked a clear opportunity to revitalize Peru’s sustainable capital markets, diversify financing sources, mobilize international investors and bring new issuers to the market. 

Value Creation and Sustainability

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Based on LAGreen’s USD 20M subordinated investment, the bank anchored a USD 200M sustainability program. This created strong risk-adjusted returns, while enabling BanBif to expand lending in priority sectors such as renewable energy, sustainable agriculture, and green buildings. The deal sparked interest in the thematic market, both for issuers and investors, demonstrating Peru’s potential as a sustainable finance market.

 

BanBif was the first issuer to receive end-to-end support from the fund. Currently it is engaged with other potential new issuers, working to help them structure their thematic issuances, in the local market. These efforts have positioned LAGreen as a catalytic partner in Peru and the region.  

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