IDB Group targets $500 billion Latin American loan pool for global investment

(Reuters) -The Inter-American Development Bank is aiming to attract private capital to Latin America by helping turn a pool of up to $500 billion of regional local loans into investable global assets, the lender said on Tuesday.

ReInvest+, a partnership between the IDB Group and Brazil’s presidency of the COP30, seeks to convert performing loans already on local bank balance sheets into investment-grade, hard-currency securities by adding political and foreign exchange risk insurance. The move is designed to attract institutional investors who typically shy away from early-stage, unrated, and local-currency projects.

“Up until now, we’ve asked investors to change their risk appetite,” IDB President Ilan Goldfajn said. “We’re flipping the script. The projects must go where the money is.”