IDB Invest, rated AAA/Aa1/AA+, priced a new 10-year silver economy social bond under its Sustainable Debt Framework.

Meiji Yasuda Life Insurance Company is the sole investor of the bond that was arranged by Toronto Dominion Bank. This is IDB Invest’s first silver economy bond.

The silver economy includes all those economic activities, products and services designed to meet the needs of people over 50 years old.

Proceeds from the IDB Invest silver economy social bond will be directed to fund social projects with a focus on alleviating poverty and reducing inequalities that affect senior citizens and retirees in Latin America and the Caribbean. It will contribute to the UN Sustainable Development Goals 1 and 10.

Through its silver economy projects, IDB Invest supports economic activities, products and services designed to meet the needs of an ageing population.

This can improve the inclusion and the quality of life of a growing market segment in our societies, such as small and medium enterprises (SMEs) owned by elderly adults (defined as aged 60 years or older) and financial services to retirees including through digital solutions.

A recent IDB Group report shows that the Latin America and Caribbean region is expected to experience the fastest rate of population aging in the world over the coming decades.

According to UN estimates, by 2050, more than one in four people are expected to be over 60 years of age in the region. By 2090, the region will have the highest percentage of adults aged 60 and over in the world, with more than 36 per cent.