Impact investments, those that seek to generate an impact in relation to issues such as climate change or social development in the fields of gender, diversity and inclusion (GDI) are nowadays booming globally. However, Latin America and the Caribbean (LAC) is receiving less than 4% of global impact investments.

According to a new article published on the IDB Invest blog, multilateral actors can contribute to closing this gap in the region by attracting sustainable investors in potential thematic bonds, and providing support to obtain greater liquidity for important infrastructure projects. Some relevant examples of IDB Invest participation -in its key catalytic role- include: i) the issuance of a 260-million dollars social bond in Colombia for the construction of the Rumichaca-Pasto highway; ii) the works executed in the Antioquia Colombia Port, through a 390-million dollars syndicated loan to finance a completely new and efficient port.

The article concludes that the way to attract investment to LAC is through solid agreements that have advanced environmental, social and integrity frameworks and that are structured in a flexible and creative way at the pace that the market demands.