PERU, JULY 5, 2024. The Climate Bonds Initiative recognized Peru’s Ministry of Economy and Finance for the launch of its first Sustainability Bond, which was supported by the Global Green Growth Institute (GGGI). The bond received the “The Just Transition Trailblazer Award” during the 9th edition of the Climate Bond Awards,  announced on May 22, 2024. 

Officially launched in June 2023 in local currency, this bond raised S/ 16.358 million (in local currency) at a 7.30% coupon rate. It is expected to strengthen public debt management, promote market diversification, and support Peru in its transition to a just, inclusive, and environmentally responsible economy. 

Betty Sotelo Bazán, Vice Minister of Finance, highlighted: “Our commitment to a just and sustainable transition is reflected in this historic issuance as a sustainable sovereign bond in local currency. We have the firm conviction to continue channeling resources to address economic, environmental and social challenges, demonstrating that Peru continues its path towards a more inclusive and responsible future.” 

GGGI, through its UK PACT-funded project, played a key role in supporting the structuring and design of the bond. This included advising Peru’s Ministry of Economy and Finance in developing the Sustainable Bond Framework (SBF), negotiating the Second Party Opinion from Sustainalytics, preparing subsequent impact reports, and unlocking new sources of long-term, affordable finance to align the country with its climate targets.  This framework was approved in 2021, raising USD 3.2 billion with that issuance, and has served as a reference for issuances since that date. 

The Climate Bonds Awards recognize the achievements of organizations, financial institutions, and governments that have demonstrated leadership in the global low-carbon and climate-resilient investment market.This accolade underscores Peru’s proactive approach to sustainable development and highlights its efforts to foster a just transition, promoting an economy that is both inclusive and environmentally responsible.

About GGGI in Peru 

GGGI works hand in hand with multilateral institutions, government agencies and the private sector to develop a diverse portfolio of programs through an integrated approach to green growth planning and implementation, offering innovative solutions and sharing knowledge.  

GGGI in Peru envisions itself as a strong Country Program leading and implementing green growth on a large scale, with a diversified portfolio of projects in Green Finance, Sustainable Forests, Climate Resilient Agriculture, Biodiversity Management and Adaptation, as well as implementing a National Green Finance Roadmap in Peru.  

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For more information, visit:  https://gggi.org