Green finance pioneer Uruguay seeks ESG loans from multilaterals
![Green finance pioneer Uruguay seeks ESG loans from multilaterals](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/01/vecteezy_businessman-touching-esg-environmental-social-governance_6171432-scaled.jpg)
Uruguay aims to borrow at least one multilateral loan with low-interest rates linked to environmental goals this year.
This would be the country’s first time accessing such a multilateral loan, following its previous sale of $2.2 billion in innovative sustainability-linked bonds.
Uruguay is in talks for a loan from the Inter-American Development Bank, focusing on energy efficiency goals.
Additionally, the country is getting ready to sign a $350 million loan from the World Bank.
With this loan, the interest payments would decrease if Uruguay reduces the intensity of methane emissions from livestock, Herman Kamil, who leads the Finance Ministry’s debt management unit told Bloomberg.
“We are very open in terms of the currency, jurisdiction, and format that we could issue on international markets. We are in no rush,” he said in an interview.
“We’ve laid the foundations for Uruguay to be a regular sustainable finance issuer or loan taker. Whether that actually happens will depend on the policy priorities of future administrations,” he said.
Finance Minister Azucena Arbeleche advocates the idea of developing countries utilizing ESG financing.
She particularly vouches for financial instruments with interest rates tied to environmental targets as a means to further their climate goals.
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