Banco de Desarrollo Productivo issued BOB102.9 million in green bonds, marking a significant milestone as Bolivia’s first certified deal by the Climate Bonds Initiative. The funds will support solar energy projects in Santa Cruz and Potosí, promoting a low-carbon economy and reducing greenhouse gas emissions. Andrés Felipe Sánchez hailed it as a precedent for future green investments.
Banco de Desarrollo Productivo (BDP) has successfully issued its inaugural green bonds, valued at BOB102.9 million ($14.8 million). This notable transaction is the first certified green bond in Bolivia, as confirmed by the Climate Bonds Initiative, an esteemed nonprofit organization.
The development bank, which is primarily state-owned (80%) with 20% ownership by the Latin American development bank CAF, intends to allocate these funds towards solar energy initiatives. These projects aim to facilitate Bolivia’s transition towards a low-carbon economy, as outlined in a press release from the bank.
Specific projects earmarked for these funds include the construction of photovoltaic plants and associated infrastructure in Santa Cruz and Potosí. These projects are expected to enhance climate resilience, diminish reliance on fossil fuels, and reduce greenhouse gas emissions throughout the country.
Andrés Felipe Sánchez, the head for Latin America and the Caribbean at the Climate Bonds Initiative, remarked on the significance of this transaction, referring to it as a milestone and stating that it “sets a precedent for future green investments.”
BDP’s engagement in green financing is indicative of a growing trend in sustainable finance and investment, reflecting a commitment to environmentally conscious infrastructure development.
The Banco de Desarrollo Productivo has taken a significant step by issuing Bolivia’s first certified green bonds, promoting sustainable development and renewable energy use. The funds from this initiative will be directed towards solar energy projects, contributing to a transition to a lower carbon economy. This groundbreaking deal is recognized as not only an important milestone for Bolivia but also a precedent for future investments in green financing across the region.
Original Source: latinfinance.com
