Business opportunities with the Inter-American Development Bank Group
The Inter-American Development Bank Group (IDBG), with its headquarters in Washington DC and country offices in its 26 member countries in Latin America and the Caribbean (LAC), is a useful partner for Finnish companies seeking to enter or to expand their activities in the region. The Bank group’s public side, the Inter-American Development Bank (IDB), its private side, IDB Invest, and its start-up and innovation window, IDB Lab, all offer opportunities for Finnish companies.
The IDB provides loans to its LAC member countries for investment projects and policy reforms as well as non-reimbursable technical cooperation funding. Finnish companies can benefit from these opportunities mainly by participating in calls for tenders organized by the borrowing countries, but also as consulting partners for technical cooperation.
IDB Invest’s financing instruments include loans to private companies, equity and innovative financing solutions especially in agribusiness, digital economy, energy, manufacturing, social infrastructure, tourism, transport, water and sanitation. IDB Invest project sizes range from USD 1 million to hundreds of millions. Finnish companies can look for direct financing, or Finnish technology or solutions can be part of a project for which a client or partner company gets financing from IDB Invest. One particular channel is the Finland-LAC Blended Finance Climate Fund for climate-related private sector projects in the LAC region.
Among the variety of its financing products and activities, IDB Lab promotes for example innovation challenges and quests where also Finnish companies with strong presence in Latin America and the Caribbean can take part.
Realities and advantages of collaborating with the IDBG
The IDBG is a development bank, so companies and projects need to have real and measurable development impacts. Project preparation processes are quite long with several separate stages – this also applies to direct project and corporate financing. However, lengthy processes go hand in hand with strong support for project preparation and, on IDB Invest side, for company development.
Regarding financing, IDB Invest follows the principle of “not crowding out”, so interest rates are market-based, but on the other hand, innovative solutions such as local currency instruments are available in certain countries, and financing conditions can be more flexible. In addition, the IDBG operates in areas and sectors where commercial banks do not operate.
When working with the IDBG, companies face stricter due diligence processes than with commercial banks (gender and diversity, ESG, corporate governance, credit worthiness etc.). However, that process produces a certain “Stamp of approval” that indicates to potential clients, partners, investors and authorities the solidity of the company.
Check list for Finnish companies:
- Create and maintain contacts with IDBG country offices to learn about country priorities, future projects, events and trainings, and to provide information on your products and expertise.
- Connect with companies having already worked with the IDBG in view of future collaboration opportunities.
- Follow information about projects and contracts through the IDB procurement website and the BID for the Americas Bidder Center platform where you will also find the mobile app, access IDB trainings and connect with the online business network of the IDBG.
- Do your homework when looking for financing: ensure you have a reliable business model, skilled team, solid risk management, compliance with ESG criteria and competitiveness in the global/local market etc. Readiness to invest own capital is also an important factor.
The IDBG is the largest source of financing for social, economic, and institutional development in Latin America and the Caribbean. Thus, it is worthwhile for Finnish companies to explore the opportunities for collaboration.
Nora Klami
Counselor representing Finland at the Board of Executive Directors of the IDBG
March 2025
