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IDB Invest and Banco Adopem Launch the First Gender Bond of Its Kind in the Dominican Republic

PUNTA CANA, Dominican Republic – IDB Invest announced the signing of an agreement for a five-year gender bond to be issued by Banco de Ahorro y Crédito Adopem S.A., part of the BBVA Microfinance Foundation, equivalent to $15 million in Dominican pesos. This is the first gender bond with incentives linked to the achievement of results that Banco Adopem will place privately in the capital markets, after receiving regulatory approval. It will be the first of its kind in the Dominican Republic.


The bond funds will be used to support the growth of Banco Adopem's strategic portfolios: small and medium-sized enterprises (SMEs) led by women or microenterprises owned by women. The agreement was announced at the Annual Meeting of the Boards of Governors of the IDB and IDB Invest, held from March 6 to 10, with the participation of James Scriven, CEO of IDB Invest, Mercedes Canalda de Beras- Goico, Executive President of Banco Adopem, and Eva Carvajal de Toribio, Executive Vice President of Business at Banco Adopem.


The bond will be aligned with the Social Bond Principles of the International Capital Markets Association (ICMA). This is the second transaction in the Dominican Republic that is part of the Women Entrepreneurs Financing Initiative (We-Fi), an international alliance that aims to unlock financing and market access for companies owned or run by women.


IDB Invest will support Banco Adopem in obtaining an independent verification of the methodological framework, known as a second-party opinion, to be issued by an external consulting firm specialized in this type of projects.


Likewise, the project includes an evaluation young women entrepreneurs’ experience with financial products and services to understand the gaps in access to finance. It will also help identify the needs of young women to expand their entrepreneurship. Additionally, the project will include a financial incentive based on performance of up to $280,000 to achieve annual goals for the number of women-owned SME clients and migrant SME clients from Haiti or Venezuela in Banco Adopem's portfolio.


Although financial inclusion in the Dominican Republic has improved in recent years with the modernization of the payment system and the simplification and regulation of credit and debit card issuance procedures, disparities continue in the use of products and financial services according to income levels, and between the urban and rural population.


By promoting gender equality and the economic empowerment of women entrepreneurs and women-owned micro, small and medium-sized entrepreneurs (MSMEs), the project addresses the need to drive financial inclusion, which is critical to reduce poverty and achieve comprehensive economic growth.


IDB Invest also supported Banco Adopem in the design of the methodological framework for the use of funds that contains the criteria for project selection, monitoring and evaluation, aligned with internationally accepted principles for social emissions.


This project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Reduced Inequalities (SDG 10).


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 $21 billion in assets under management and over 394 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 Banco de Ahorro y Crédito Adopem SA

Banco de Ahorro y Crédito Adopem is a financial institution committed to improving the quality of life of Dominicans. It aims to respond efficiently to the needs of its clients through the development of relationship banking, the implementation of digital transformation projects and the promotion of diversity and inclusion. Banco Adopem is an entity of the BBVA Microfinance Foundation (BBVAMF). Since its creation in 2007, the Group's entities (BBVAMF) have supported more than six million low-income entrepreneurs in five Latin American countries, through the disbursement of more than 19.6 billion dollars, creating opportunities for them.