IDB Invest and Proparco Strengthen Partnership to Mobilize Private Investment in Latin America and the Caribbean

IDB Invest and Proparco have strengthened their longstanding partnership through an Enhanced Cooperation Agreement designed to facilitate co-financing and mobilize additional resources for private sector investments in Latin America and the Caribbean. 

The Agreement establishes a streamlined framework for selected transactions through which IDB Invest will lead key stages of the financing process, including due diligence, structuring, and coordination with external advisers. Under this framework, Proparco may leverage relevant transaction information and documentation to support its own review and approval.

This approach is expected to reduce duplication, improve coordination, and accelerate the execution of jointly financed transactions, helping both institutions deploy capital more efficiently and expand financing opportunities for private sector projects in the region.

The framework builds on the Co-Financing Framework Agreement signed in 2017 by IDB Invest, Proparco, FMO, and DEG. Participation under the Enhanced Cooperation Arrangement will remain voluntary and will be determined on a transaction-by-transaction basis, with each institution retaining responsibility for its own approvals and investment decisions. 

The enhanced cooperation model also supports IDB Invest’s Originate to Share business model by facilitating collaboration with development finance institutions and mobilizing additional capital into selected transaction originated and structured by IDB Invest. By enabling more efficient participation from Proparco, the model will expand IDBI’s  mobilization capacity, extend the reach of its balance sheet and support greater private sector investment across Latin America and the Caribbean.

This strategic partnership enables Proparco to demonstrate its trust and alignment with IDB Invest’s procedures, while reinforcing its commitment to enhancing operational efficiency. By leveraging mutual reliance mechanisms, Proparco streamlines processes for its partners and clients, delivering greater value through simplified and more responsive solutions. This initiative underscores Proparco’s dedication to fostering innovative collaborations that accelerate sustainable development impact.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.