October 25, 2022- The Latin American Association of Development Financing Institutions (ALIDE) held the webinar: “Thematic bonds in Latin America and the Caribbean: Past, present and future” for the purpose of analyzing the characteristics of thematic bonds and looking into opportunities for funding projects to fight climate change in the region.

During the online seminar, Pablo Cortinez, consultant on Sustainable Finance and ALIDE trainer, explained that thematic bonds are a fixed income instrument issued by a country, province, municipality, enterprise, commercial bank or multilateral organization. “The distinguishing characteristic of these bonds is their specific application,” he added.

He went on to explain that thematic bonds are classified into green, social, sustainable, gender-denominated, orange, carbon credit and sustainability-linked bonds. Insofar as the thematic bond situation in Latin America and the Caribbean is concerned, Cortinez explained that the region is responsible for only 2% of the total green bond issue –a figure of little significance, considering that the LAC countries concentrate 50% of the world’s forests 40% of its biodiversity and 30% of its fresh water.

He also indicated that the funds in Latin America and the Caribbean are applied, to a large extent, to renewable energy and energy efficiency, transportation and land use: forestation, intelligent farming and sustainable stock breeding.

About ALIDE

ALIDE is the community of financial institutions that generates banking solutions for the development of Latin America and the Caribbean. Founded in 1968, its main objective is to contribute to the economic and social development of the region, through the good practices in development financing that it promotes among its associates, about 90 institutions with a presence in more than 20 Latin American countries and other regions of the world.

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