IFC agrees first Green Loan Principles deal in LatAm

The International Finance Corporation will provide Itaú Argentina with $50 million to expand financing to small and medium-sized enterprises, and sustainable energy projects.

Seventy per cent of the funding will go to green initiatives, expecting annual savings in greenhouse gas emissions by more than 35,000 tons of CO2 - the equivalent to taking almost 7,000 cars off the road each year.

The Green Loan Principles, devised by the London-based Loan Market Association, will increase transparency in the market by ensuring that borrowers apply the funding to green projects and conduct evaluation and reporting following international standards. This is the first time a bank will implement the principles in Latin America and the Caribbean.