BLP has advised IDB Invest, FinDev Canada and LAGreen (the “Investors”) on $50 million in Costa Rica’s first blue bond, marking a historic transaction for the country’s capital markets sector.
IDB Invest partnered with Banco Nacional de Costa Rica (“BNCR”) to launch Costa Rica’s first blue bond, marking a significant step towards bolstering the blue economy. IDB Invest committed $25 million to the $50 million bond issuance, while mobilizing an additional $20 million from FinDev Canada and $5 million from LAGreen. The proceeds from the blue bond will help increase financing for companies in Costa Rica for blue economy projects, supporting marine-coastal areas, sustainable water and sewage management, plastic waste management, and the circular economy. This project will also strengthen BNCR’s capital base and support its systematic development of a blue portfolio. This collaboration underscores a shared commitment to supporting climate change mitigation and adaptation, conserving natural resources and biodiversity, and promoting sustainable development. The bond adheres to the Social and Green Bond Principles and the Blue Bond Guidelines established by the International Capital Markets Association.
BLP successfully structured Costa Rica’s inaugural blue bond, providing comprehensive services to the Investors and BNCR, including advising on all regulatory aspects of the issuance, as well as drafting and negotiating all the issuance documents related to the local offering.
This transaction strengthens the local capital markets by validating the legal framework for such issuances, marking a significant milestone in the realm of thematic bonds in the country.
