Proceeds will be used by Bancoldex to finance projects that mitigate the impact of climate change and improve the environmental performance of Colombian companies.
BOGOTÁ, Colombia- Banco de Comercio Exterior de Colombia SA, Bancóldex, with the support of the Inter-American Development Bank (IDB), today issued the country's first greenbond available through the Colombian Stock Exchange (BVC, Bolsa de Valores de Colombia) for 200 billion pesos to fund projects that help mitigate climate change impacts. The auction was 2-1/2 times oversubscribed, with a demand of 510 billion pesos.
“This is the first green bond issue placed in the local market through the Bogotá Stock Exchange,” said Juan Ketterer, head of the IDB's Connectivity, Markets and Finance Division. "We are adding efforts so that the countries of the region can raise private funds in key areas, while contributing to the development of their financial markets helping in the structuring of instruments in their own currencies," he further stated.
The bonds, structured with technical cooperation from the IDB with resources from the Secretariat of State for Economic Affairs of Switzerland (SECO)and supported by the Climate Bond Initiative, have a 5 years duration. They are issued on the local market through the Bogotá Stock Exchange and may be purchased by pension funds, institutional investors, government entities, multilateral organizations, insurance companies, businesses and the public.
The issue has been reviewed by Sustainalytics, a leading independent global institution in social, environmental, and corporate governance assessments.
"Green bonds are a fundamental product so that Bancóldex can advance in the financing of projects related to sustainable construction, cleaner production, energy efficiency and renewable energy, among others, necessary to combat climate change," said Luis Fernando Castro, President of Bancóldex.
Bancóldex has created an energy efficiency line for hotels, clinics and hospitals, as well as for the purchase of hybrid or electric buses for the Bogotá Integrated Transportation System. It has trained 14 banks in environmental issues.
"We need more development banks to follow the examples of Bancóldex and the IDB and to promote green bonds as a capital raising tool to finance the NDCs and sustainable development," said Sean Kidney, CEO of The Climate Bonds Initiative.
Green bonds are a solution to the financing gap for clean energy and energy efficiency projects in the region. The IDB's support for this market is part of its strategy to promote the green economy and to join efforts in the goals established for the framework of the United Nations Conference on Climate Change in Paris 2015.
Bancóldex is the development bank for business growth in Colombia. It offers knowledge, capital, and connections to boost the growth of companies that dare to grow and are ready to reach other regions of Colombia, compete globally, conquer another country, accelerate growth and evolve with intelligent capital.
About the Economic Cooperation of Switzerland
The Swiss Government, through the Secretary of State for Economic Affairs (SECO), deals with all the fundamental questions related to the economic policy of Switzerland. Through its department of economic cooperation and development, it seeks to contribute to sustainable economic growth in partner countries, promoting appropriate regulatory and economic policies. Secretaria de Estado para Asuntos Economicos (SECOS)
About the Climate Bonds Initiative
The Climate Bonds Initiative is a non-profit organization focused on promoting large-scale investment in the low-carbon economy. Climate Bonds Initiative
About the IDB
The Inter-American Development Bank's mission is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for the economic, social, and institutional development of Latin America and the Caribbean. The IDB also conducts state-of-the-art research projects and provides policy advice, technical assistance, and training to public as well as private clients throughout the region.
- Janaina Goulart
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- Mildred Rivera
Maria Netto Schneider
Financial Markets Specialist