CAF will invest in the VICC fund to promote the climate agenda in Latin America

CAF -development bank of Latin America- will invest up to USD 10 million in the fund Vinci Climate Change, LP (VICC), managed by one of the main asset management firms in Brazil, Vinci Partners (Vinci). CAF is the first multilateral entity to approve its participation in VICC, assuming an anchor investor role and giving Vinci a vote of confidence to attract new investors.

VICC, with a target size of USD 400 million, will invest in projects that actively contribute to the climate agenda; from the generation of renewable energy and water to the efficient use of natural resources and the reduction of emissions, with the aim of mitigating the effects of climate change while generating financial returns.

The fund plans to create, in partnerships with key operators and developers, a leading portfolio of scalable climate solutions with the potential to increase positive impact to mitigate the effects of global warming.

Through the investment in VICC, CAF is promoting a positive and measurable impact in social, environmental, and economic matters, in line with its mission to become Latin America’s and the Caribbean green bank. Additionally, CAF is contributing to the development of infrastructure in Brazil, increasing the financing capacity of the market and attracting capital from third parties. Investment in this type of fund also has a significant impact on the country's productivity and competitiveness.

“We have great expectations that our participation in VICC will be just a first step in collaboration between CAF and Vinci, starting a strategic alliance to exchange knowledge and create value beyond the capital invested. Additionally, together with Vinci, CAF hopes to be able to participate directly in the financing of high-impact projects in line with our green strategy” said Jorge Velarde, Director of Funds and Impact Investments in CAF.

Through these types of operations, CAF promotes the sustainable and sustained development of its member countries by strengthening the private capital ecosystem, with an emphasis on the mobilization of intelligent capital towards high-impact projects. This is achieved by assuming a leadership role in the structuring and promotion of vehicles and investments (direct or through funds), with a clear vision of impact, active coordination with the main players in the sector and promotion of best market practices.