Projects
Sustainable Bonds Mechanisms (Paraguay)
Design of a combined financing mechanism and Sustainability Linked Bonds
The Agencia Financiera de Desarrollo (AFD), the national development bank of Paraguay, in collaboration with the GGGI, is exploring alternative capital raising mechanisms to increase the concessionality of its green and social credit programs in order to increase its financing of climate change mitigation and adaptation programs, while maximizing benefits for vulnerable groups. The planned mixed financing instrument consists of a Sustainability Linked Bond (SLB) that will be issued by AFD with a partial credit guarantee from the Green Climate Fund.