International Finance Corporation (IFC) will fund Peru with US$25 million. The sum will help the country access climate finance, improve its environmental impact, and promote a greener financial sector and market sustainability. Finance in Motion's Eco-business Fund contributed US$15 million.
IFC's investment will allow Banco Interamericano de Finanzas (BanBif) to jump-start its green finance portfolio, including green building, energy efficiency, and climate-smart farming. The earnings will finance the bank's green construction portfolio and energy efficiency or climate-smart agribusiness.
IFC will provide performance-based incentives for green mortgages and construction loans to boost green housing adoption. The UK Department for Business, Energy, and Industrial Strategy's Market Accelerator for Green Construction (MAGC) program will support the incentives. MAGC encourages financial intermediaries to expand green building construction finance offerings in emerging nations.
