The Inter-American Development Bank (IDB), its private sector entity IDB Invest, and the European Investment Bank (EIB) have formally expanded their partnership through a new Memorandum of Understanding (MOU), which was signed in Washington DC by IDB President Luis Alberto Moreno, IDB Invest General Manager James Scriven, and EIB President Werner Hoyer. This renewed collaboration reflects the partners’ commitment to advance development in Latin America and the Caribbean (LAC) through blended finance, co-financing, and knowledge sharing.
In line with the IDB’s strategic focus on pioneering blended and innovative financing schemes to finance the Sustainable Development Goals (SDG), and consistent with the EIB’s key role in sustainable finance, the IDB-EIB partnership will prioritize efforts to explore these new financing sources. Specifically, the partners intend to use blended instruments to further leverage the European Union’s support to LAC-focused platforms such as the Latin American Investment Facility and the Caribbean Investment Facility.
The partners will also build upon their active history of co-financing projects by funding additional sovereign guaranteed operations in LAC countries including Colombia, Haiti, and Peru and identifying key areas in which to expand their co-financing of non-sovereign guaranteed operations with IDB Invest.
Finally, the IDB and the EIB will continue to tap into each organization’s technical expertise by exploring the facilitation of capital market instruments issuance by third parties, such as SDG bonds, and through knowledge sharing efforts. A top priority for the partnership is the development of a staff exchange program to facilitate knowledge sharing on public-private partnerships and other topics of mutual interest.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org
The European Investment Bank(EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goalsboth in Europe and beyond. The European Investment Bank is active in around 160 countries. It is the world’s largest financier of climate-related investment with 100 billion USD committed for climate action in the 5 years up to 2020 in support of the Paris Agreement