IDB Showing Interest in Securitization

The Inter-American Development Bank (IDB) plans to securitize $500 billion in loans in Latin America that are currently sitting on local bank balance sheets. The goal of the transaction is to attract institutional investors and private capital to fund future climate-related development projects. These securities would have additional political and foreign exchange risk insurance and would be used to close the estimated $1.3 trillion annual climate financing gap. The IDB is calling for proposals from partners who will purchase the securities over the next year.

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