Structured and Corporate Finance Department
Supporting medium to large scale sustainable private sector projects in Latin America and the Caribbean
The IDB Group’s Structured and Corporate Finance Department (SCF) leads all non-sovereign guaranteed operations for large infrastructure projects, financial institutions, capital markets, trade finance, companies, and state-owned enterprises in a broad range of economic sectors.
Through its syndication program, SCF plays a catalytic role, helping mobilize resources from third parties by partnering with commercial banks, institutional investors, co-guarantors, and other co-lenders for projects with high developmental impact. As an impact investor itself, SCF partners with other impact investors to provide loans and partial credit guarantees for the projects it finances.
SCF provides tailor-made medium- and long-term direct loans, guarantees and technical assistance in the form of non-reimbursable financing for large companies and eligible state-owned enterprises without a sovereign guarantee, financial institutions with assets above US$500 million as well as investment funds with operations and projects in one of the IDB’s 26 borrowing member countries in Latin America and the Caribbean.
SCF supports both project financing for greenfield and expansion projects through loans and guarantees and corporate financing for expansions and modernizations. The sectors in which SCF works include, among others: energy, transportation, water and sanitation, energy efficiency, recycling, agribusiness, sustainable natural resources, healthcare, education, and tourism.
For financial institutions and investment funds, SCF invests in high social impact sectors such as housing and micro, small, and medium-size enterprises. By incorporating environmental viability, social inclusion, transparency and accountability practices in the financial sector, SCF supports a new regional banking system that balances financial and non-financial returns on investments, expand access to credit, champions climate conscious leadership, and promotes innovative business practices.
Moreover, it has developed beyondBanking, a program with special sustainability lines for financial intermediaries in the areas of energy efficiency, renewable energy, and waste and water treatment and technical cooperation programs aimed at promoting sustainable environmental, social and corporate governance principles within financial intermediaries in the region.
Through the Trade Finance Facilitation Program, SCF supports international banks to access the Latin American and Caribbean market while allowing regional banks to onlend to other regional issuing banks. The TFFP program plays a pivotal role in stabilizing trade finance flows, opening markets to smaller players and promoting South-South trade. The TFFP program provides guarantees to cover the commercial and political risk of nonpayment by the issuing bank on trade-related instruments, and provides specialized training to trade finance banks and their clients.
SCF finances between 25 percent and 40 percent of the total cost of a project, providing up to $200 million in financing. On an exceptional basis, it can increase its financing to up to $400 million. Technical assistance usually ranges between $100,000 and $1.5 million.
In the framework of private sector projects there are some consulting opportunities at SCF for general due diligence studies related to non-sovereign guaranteed operations as well as social and environmental due diligence of projects.