Latin America and Caribbean (LAC): State of The Market 2021 is the second detailed analysis of the LAC green finance market, the first one was launched in 2019. The report was supported by the Inter-American Development Bank (IDB) and the International Finance Corporation (IFC).
The LAC green bond market achieved its highest green bond numbers in 2020, and is on track for similar figures in 2021. Green bond issuance grew from USD13.6bn in September 2019 to USD30.2bn at the end of June 2021 – in less than two years. This development was primarily supported by sovereign issuance from the Republic of Chile (USD3.8bn) and by various issuers from Brazil (USD2.5bn).
Corporate and sovereign issuers prevail in the market while volume from development banks fell to 14% cumulatively from 18% since 2019. Non-financial corporates (39%) and sovereigns (25%) maintain the top spots among issuer types in cumulative terms, thanks to large-scale issuances from Brazil and Chile. As of June 2021, Chile is the only country in the region to have issued sovereign green bonds.
New countries have also entered the green bond market over the past two years: Barbados, Bermuda, Ecuador and Panama issued their first green bonds since 2019, bringing the total number of Green, Social and Sustainability (GSS) issuer countries in LAC to 14.
Download the full report here.
Translation to Spanish and Portuguese available below.