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Posted on February 21, 2024 | Updated at 9AM

FinDev Canada, IDB Invest and CAF strengthen their commitment to climate action in Latin America and the Caribbean by supporting the region’s first private credit climate finance fund


Montreal (Quebec), February 21, 2024 – Canada’s Development Finance Institution, FinDev Canada, and IDB Invest have each signed an up to US$ 50 million commitment to DIC Latin American Fund IV, L.P. (Darby IV), the first private credit climate finance fund in Latin America and the Caribbean (LAC). CAF, Development Bank of Latin America and the Caribbean, committed for US$ 15 million. 

Darby IV is a 10-year, climate-focused debt fund with a target size of US $400 million, managed by Darby International Capital LLC, a leading emerging markets private debt investor. The Fund will earmark at least 40% of invested capital to climate finance transactions, while also providing portfolio clients with guidance on capacity building to identify and mitigate climate risks, which will enable businesses and projects to better adapt to the effects of climate change.

The commitments from FinDev Canada, IDB Invest and CAF mobilize both development finance and private institutional capital to support the provision of tailored long-term growth financing to underserved mid-sized enterprises for low carbon and climate-resilient operations throughout the region. It will also help the Fund to foster economic growth, job creation and sustainable development within this crucial but often overlooked mid-market segment. 

“With this transaction, FinDev Canada emerges as a meaningful partner to an experienced fund manager in its inaugural climate focused fund, which offers a great opportunity to continue to support climate action in the region,” Paulo Martelli, VP and Chief Investment Officer at FinDev Canada, declares.

“Climate investments to mitigate and adapt to climate change are an integral part of IDB Invest’s strategy for LAC, we are honored to support the first private credit climate finance fund in the region,” Marisela Alvarenga, Managing Director, Financial Institutions at IDB Invest says

“This investment is aligned with the strategic objectives of CAF in order to consolidate Latin America and the Caribbean as a region that contributes substantially to reverse climate change and its effects, through greener and more sustainable investments in our countries,” declares Jorge Arbache, Private Sector Vice president at CAF.

The Fund manager has a strong regional presence, established brand and a track record of demonstrating a substantial impact in its target regions. Through the manager’s extensive experience and strategic market positioning, the Fund will also support market development and improve access to financing for mid-sized companies that encounter challenges in sourcing affordable long-term expansion capital, promoting growth and creating formal employment opportunities in the region. 

About FinDev Canada      

FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs) aligned with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at   

About Darby International Capital LLC

Darby International Capital LLC is a leading emerging markets private credit provider with a focus on Latin America and the Caribbean and has offices in Washington, DC, Bogotá, and São Paulo. Darby International Capital LLC was founded in 2020 as the result of a spin-out of the Latin America-focused private debt investment team of global asset manager Franklin Templeton.

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank 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 $16.3 billion in assets under management and over 390 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. 

About CAF

The mission of CAF, Development Bank of Latin America and the Caribbean, is to promote sustainable development and regional integration by means of financing projects in the public and private sectors, providing technical cooperation, and other specialized services. Created in 1970, it is made up of 21 countries, 19 Latin American and Caribbean, together with Spain and Portugal, and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region. More information in


Media contact 

FinDev Canada 

Florence Reinson 
Senior External Communications and Media Advisor