The Inter-American Development Bank (IDB), in collaboration with the International Water Association (IWA), and through the multi-donor fund AquaFund, has published a applied guide for companies in the Water and Sanitation (W&S) sector interested in issuing green bonds.

The document supports that there is a significant financing gap in the W&S sector in Latin America and the Caribbean (LAC), estimating investments needs close to 375 billion dollars (equivalent to 0.5% of regional GDP) to guarantee the access to water and sanitation and wastewater treatment.

The guide summarizes lessons learned and challenges for green bonds issuance through the case studies of two Colombian companies: the Bogotá Aqueduct and Sewerage Company (EAAB) and the Pereira Aqueduct and Sewerage Company (EAAP). Also, the different processes comprising the issuance of a green bond are described.

The authors conclude that green bonds are effective capital market instruments that can be used to close the aforementioned financing gaps, applying the resources obtained in investments aiming to improve environmental sustainability and the access and resilience of aqueduct and sewerage systems.