LAGreen invests in Costa Rica’s first blue bond
LAGreen Fund, the first green bond fund for Latin America and the Caribbean, proudly announces its investment in Costa Rica’s first blue bond, issued by Banco Nacional de Costa Rica (BN).
The bond is one of the first ones worldwide structured according to ICMA’s Blue Finance Guidelines published in October 2023. The proceeds of the bond will mainly be dedicated to investments in water treatment and sewage connectivity as well as in sustainable fisheries and sustainable agriculture in proximity of coastal areas.
LAGreen invested USD 5 million out of the USD 50 million issuance, to be further filled with co-investments from IDB Invest and FinDev Canada. In addition, LAGreen will provide technical support for the preparation of the bond’s impact report.
Johannes Scholl, Chairman of LAGreen, stated, “recent news from Latin America and other regions, where severe floods and lengthy droughts are becoming more radical and harder to predict, underscore the importance of investing in water management and infrastructure to increase the resilience of the countries against the effects of climate change”. In relation to the subordinated nature of the bond, Scholl added that “this subordinate bond strengthens the capital base of the bank and allows it to mobilize additional senior debt from mainstream commercial investors. Thus, we are able to significantly enhance the environmental and social impact of our investment”.
“At BN we’ve been pioneers in creating sustainable financial products that aim to care for and preserve natural resources. We’re thrilled to announce Costa Rica's first Blue Bond, an instrument that will help protect the oceans and preserve marine ecosystems, while promoting the blue economy. Our sustainable DNA translates into economic, environmental, and social well-being. With this Blue Bond we mark a historical milestone that we hope will inspire other countries”, said Rosaysella Ulloa Villalobos, CEO of Banco Nacional de Costa Rica.
About LAGreen
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.
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).
For more information visit https://lagreen.lu and follow us on LinkedIn
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.
For more information, please visit us at: www.finance-in-motion.com
You can also follow us on X @financeinmotion and LinkedIn
About Banco Nacional de Costa Rica
The Banco Nacional de Costa Rica celebrates its 110th anniversary in 2024 and is the leading entity in the Costa Rican financial system that provides quality banking solutions to more than 2.6 million clients in Costa Rica. With a strong commitment to environmental, social, and economic sustainability, it issued the first green bond, the first social bond, and now also the first blue bond in the Central American region to strengthen its sustainable loan portfolio and to help impoverished communities while enhancing financial services for women. Its leadership in renewable energy projects, sustainable finance, and technological innovation has been crucial to guarantee sustainable and equitable development in the Costa Rican economy on the path to economic recovery.
For more information, please visit us at: www.bncr.fi.cr and
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