Start of main content

February 21, 2024
CARRIBEAN LANDSCAPE

FinDev Canada, IDB Invest and CAF strengthen their commitment to climate action in Latin America and the Caribbean by supporting the region’s first private credit climate finance fund

Press Release

Montreal (Quebec), February 21, 2024 – Canada’s Development Finance Institution, FinDev Canada, and IDB Invest have each signed an up to US$ 50 million commitment to DIC Latin American Fund IV, L.P.

Supporting low‑carbon and climate‑resilient growth

The Fund seeks to target 50% of its capital towards climate finance transactions, making climate financing more readily available to support low‑carbon and climate‑resilient operations throughout LAC.

CLIMATE ACTION

  • Supporting low‑carbon and climate‑resilient growth: The Fund seeks to target 50% of its capital towards climate finance transactions, making climate financing more readily available to support low‑carbon and climate‑resilient operations throughout LAC.
  • Commitment to sustainable practices: Darby is a signatory of the Principles for Responsible Investment, and its ESG and Climate Policy were designed in accordance with internationally recognized standards including the EU Taxonomy, MDB’s Common Principles for Climate Mitigation Finance Tracking and the Task Force on Climate‑related Finance Disclosures (TCFD). Moreover, Darby has a climate data collection and reporting system that enables it to measure the climate performance of its portfolio investments, including scope 1 and 2 GHG emissions. Climate considerations and other ESG matters relevant to the Fund’s portfolio will also be monitored through an ESG sub‑committee comprising of FinDev Canada and peer ESG professionals from DFI partners.
  • Increasing climate adaptation: As part of Darby’s investment screening and monitoring process, the Manager assesses the climate risks of its portfolio companies and evaluates a potential portfolio company’s climate risk management capability. The Manager also provides guidance on identifying and mitigating climate risks to their investees, enabling them to better adapt to the effects of climate change. 

MARKET DEVELOPMENT

  • Supporting mid‑sized businesses: Darby was founded to address the significant challenges faced by mid‑sized companies in accessing financing. The Fund will support the growth of mid‑sized companies by providing tailored financial solutions, strategic guidance and ESG advisory support to its investees.
  • Contributing to economic growth: Darby’s investees are expected to positively contribute to their local economy through the generation of local employment opportunities, increased local procurement, and government tax revenues.