These are green times, times of responsible investment.
- This would be the first issue of green bonds in Panama which will be entirely destined to finance environmentally friendly projects, especially in the energy sector and other infrastructure works.
- In the year 2018, Corporación Interamericana para el Financiamiento de Infraestructura (CIFI), at a regional level, had a renewable energy portfolio with an installed capacity of 732 MW, representing a reduction in greenhouse gas emissions of more than 1.2 million tons of CO2e per year.
Panama, August 28, 2019. Corporación Interamericana para el Financiamiento de Infraestructura (CIFI), non-bank financial entity with more than 18 years of experience in the financing of infrastructure and energy in Latin America and the Caribbean, was present at the XX Investor Forum organized by the Panamanian Stock Exchange whereby it addressed its path, plans and perspectives towards the medium-term.
CIFI, whose level of expertise and knowledge of the region have allowed it to participate in the financing of more than 200 projects worth USD1.5 billion, informed it is preparing to enter the capital market during the next few months, with the registration of a bonds issuance program for an aggregate amount of 200 million dollars, expecting to achieve the interest of regional investors.
Green bonds are debt instruments that, apart from generating returns to investors, allows them to allocate their investments to the financing of projects that have a positive impact on the environment, such as the ones focusing on renewable energy and energy efficiency, water and sanitation, and waste handling.
The entity’s Executive Director, César Cañedo-Argüelles, indicated that “with this first issuance of Panamanian green bonds, through CIFI, we join the global trend for the financing of responsible and sustainable projects, offering investors the opportunity to participate in double impact projects, financial and environmental”.
This would be the first issue of green bonds in Panama destined in its entirety to the financing of environmentally friendly projects, especially in the energy sector as well as other infrastructure works. “CIFI is a pioneer and has the expertise in this investment tendency that is gaining greater acceptance worldwide by the day. These are green times, times of responsible investing”, Cañedo-Argüelles indicated.
50% of CIFI’s portfolio is invested in projects that generate a positive impact on the world we live in, highlighted as a leader in this movement in Latin American where it has demonstrated its commitment to structuring and financing projects that mitigate the impacts of climate change, helping to reduce pollution and promoting sustainable management of natural resources.
In Panama, where its offices were established in the year 2016, CIFI has been involved in the financing of multiple projects, such as the Laudato Si Wind Park in Penonomé, the Espinal Photovoltaic Park, the Panasolar Photovoltaic Plant, some small hydroelectric plants in the Province of Chiriquí, among others. Likewise, in the region, CIFI has been a pioneer in the financing of wind, solar, geothermal, and energy efficiency projects in countries such as Nicaragua, El Salvador, Guatemala, Honduras, Costa Rica, Dominican Republic, Mexico, Uruguay and Chile.
In addition to energy projects, CIFI has also financed several infrastructure projects in the transportation, waste management, water and sanitation sectors, as well as logistic platforms in countries such as Brazil, Trinidad and Tobago, Paraguay, Argentina, Colombia and Peru.
Through the issuance of green bonds, CIFI additionally contributes to the interest of the Panamanian Stock Exchange in positioning the country as a center for sustainable financing in the region, process that will allow to capitalize on opportunities and challenges arising for the financial sector and consolidating a joint responsibility mode for environmental management by the different sectors of society.
And as part of the financial system, CIFI has always been committed to contributing to the development of an inclusive economy, resilient and sustainable, that promotes human welfare, social equity and environmental conservation in line with the Objectives of Sustainable Development (ODS) of the United Nations and the Paris Agreement on Climate Change.
According to a study by UBS’ Investor Watch, “at global level, investors expect the proportion of sustainable investments to grow from 39% to 48% in the next 5 years, and a majority (58%) believe this will become the norm within a decade”.
General Characteristics of CIFI’s green bond issuance program:
Issuer: Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI)
Exchange Post: MMG Bank Corporation
Legal Advisor: Morgan & Morgan
External Auditors: KPMG
Independent Opinion: Sustainalytics
Terms: Up to 10 years
Interest Rate: Fixed or variable
Risk Rating: PCR: PA AA- stable outlook
CIFI (Corporación Interamericana para el Financiamiento de Infraestructura) is a non-bank financial entity with major experience in the financing of infrastructure and energy in Latin America and the Caribbean.
- 18 years of experience.
- Headquarters in Panama since 2016.
- Participation in more than 200 projects in 21 countries in the region for an amount exceeding1.5 billion dollars.