IDB Invest Launches Guide to Drive Regional Push into Thematic Bonds

  • First-of-its-kind publication for private sector debt issuers in Latin America and the Caribbean

IDB Invest, a member of the IDB Group, published an executive guide to help companies and banks in Latin America and the Caribbean meet the growing international demand for thematic bonds, a new and rapidly expanding asset class that integrates sustainability into financing strategies. 

IDB Invest’s latest guide Financing Sustainability through Capital Markets: A Practitioner’s Guide and Toolkit for Thematic Bonds provides a practical roadmap for issuers by outlining the key steps for structuring thematic bonds. It gives them the tools to assess their readiness and to weave Environmental, Social, and Corporate Governance (ESG) factors into their decision-making process, while meeting the International Capital Markets Association (ICMA) recommendations.

The guide, the first of its kind in the region, also helps issuers sharpen their management and governance capacity to attract thematic bond investors, a rapidly growing cohort looking to address environmental and social needs without sacrificing returns, while demanding quality reporting in support of triple bottom line performance.

Globally, green, social and sustainable bonds issued in 2020 reached $700 billion, almost double the 2019 total of $358 billion. Latin America and the Caribbean represents a small fraction of the global market, at 2 percent of issuances. 

IDB Invest has been involved in 30 percent of issuances in the region, supporting private companies across nine countries since 2017. These include the region’s first gender bond, issued by Banistmo in Panamá, Brazil’s first social bond, issued by Banco ABC, and the world’s first gender-linked bond based on outcomes, issued by Colombia’s Davivienda.

The new executive guide includes a five-stage practical roadmap for issuers in the region and maps new opportunities in blue, gender, transition and sustainability-linked bonds. The self-assessment matrix allows issuers to benchmark both their internal organization and the scope of their issuance against the market’s standards for a high-grade thematic bond.

About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.