Press release: IFC
IFC has announced a loan of up to $25 million to Banco Interamericano de Finanzas (BanBif), aiming to promote a greener financial sector and greater market sustainability in the country. In addition, the financing package includes $15 million from the Eco-business Fund managed by Finance in Motion.
This will ensure that businesses in Peru will have better access to funding for climate finance, enabling them to reduce their environmental impact.
IFC have said that the investment will allow BanBif to jump-start and strengthen its green finance portfolio including green building, energy efficiency, and climate-smart agribusiness while also supporting the bank’s growth prospects.
It is reported that at least 50 percent of the proceeds will be used to finance the bank’s green building portfolio while the rest of the money will be allocated either to energy efficiency or climate-smart agribusiness.
To help accelerate the uptake of green housing units, IFC will provide performance-based incentives to help the provision of green mortgages and green construction loans. The incentives will be funded by the Market Accelerator for Green Construction (MAGC) program, which is sponsored by the United Kingdom’s Department for Business, Energy and Industrial Strategy. MAGC helps scale green construction across emerging markets by incentivizing financial intermediaries to scale up green building construction finance products. This information was provided in the company’s press release.
Juan Carlos García Vizcaíno, General Manager of BanBIF, expressed:”IFC’s funding will help the bank to continue providing longer-term loans while developing a green building pipeline. Given our sustainability strategy, IFC’s support will enable us to boost our capacity to engage with clients on green building certification and sustainable practices in agriculture and other sectors. Additionally, the loan will help us diversify our funding sources allowing stronger capital buffers, crucial for post-COVID recovery.”
IFC have also said that they will equip the bank with its Excellence in Design for Greater Efficiencies (EDGE) certification tool for green buildings.
Elizabeth Martínez de Marcano, IFC´s Country Manager for the Andean Region, said: “One of IFC’s priorities in Peru is to promote new green growth opportunities and markets for inclusive growth. In alignment with Peru’s Green Finance Roadmap (2021), IFC’s financing package will foster competitiveness in the financial and real estate markets in the country. Additionally, by supporting the growth of green buildings, an emerging green asset class in the local market, IFC will help strengthen the climate finance market, key for the nation’s future resilience.”
