BanBif | green financing | US$40 million | YOUR MONEY

BanBif announced that it obtained a subordinated loan of US$ 25 million granted by the International Finance Corporation (IFC) of the World Bank Group.

In addition, the credit package includes an additional US$ 15 million from the Eco-business Fund managed by Finance in Motion, with the purpose that companies in Peru have better access to climate financing that will allow them to improve their environmental footprint.

The IFC loan will help the bank continue to make longer-term green loans while developing a portfolio of green construction projects, said Juan Carlos García Vizcaino, general manager of BanBif.

This will strengthen the green financing portfolio that includes sustainable construction, energy efficiency and climate-smart agribusiness, while supporting the bank’s growth prospects, he said.

Elizabeth Martínez de Marcano, IFC Country Manager for the Andean Region, indicated that one of IFC’s priorities in Peru is to promote new opportunities for green growth and markets for inclusive growth.

“In line with Peru’s Green Finance Roadmap (2021), IFC’s financing package will foster competitiveness in the country’s financial and real estate markets,” he said.

READ ALSO The World Bank will promote Latin America’s adaptation to climate change

ecological housing

To help accelerate the adoption of green housing units, IFC will provide assistance to incentivize the provision of green mortgages and green building loans.

This support will be provided by the Market Accelerator for Green Construction (MAGC) programme, sponsored by the UK Department for Business, Energy and Industrial Strategy.

MAGC helps scale green building in emerging markets by incentivizing financial intermediaries to scale up green building construction finance products.

Peru ranks 56th out of more than 200 countries in terms of total CO2 emissions and aims to reduce greenhouse gas (GHG) emissions by 20% by the end of 2030, compared to 2010 levels.

In the future, green buildings can play a key role as the buildings sector accounts for 25% of total final energy consumption.

A shift towards climate-smart agriculture is vital, as energy efficiency in the industrial sector is a priority for Peru’s transition to a less carbon-intensive economy, the executive said.

READ ALSO Advantages of green financing

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