IDB Invest and Banco Davivienda Salvadoreño announce $100 million financing
- The financing will support environmentally friendly projects and dynamic investments for small and medium-sized enterprises.
IDB Invest, a member of the IDB Group, has signed a financing package for an amount of up to $100 million with Banco Davivienda Salvadoreño, S.A. in El Salvador (Davivienda El Salvador). The operation, with a tenor of 5 years, is aimed at financing environmentally friendly projects (green finance) and small and medium-sized enterprises (SME) in El Salvador.
The project will support Davivienda El Salvador’s growth in green financing and its SME portfolio. This will strengthen its impact on the country's sustainability by mitigating climate change, as the green financing portfolio contributes to reducing greenhouse gas emissions, among others.
Considering the economic landscape with the global pandemic, IDB Invest is betting on financing through financial institutions so that member countries have resources for development projects.
The financing consists of a $50 million loan from IDB Invest and a $50 million loan mobilized through co-financiers.
In recent years, Davivienda El Salvador has stood out for promoting green projects through its financing. Among the main destinations are energy efficiency, renewable energy generation and wastewater treatment. It has also focused on photovoltaic power generation projects. In addition, it is one of the funders of the first wind farm in the country, which will generate enough energy to cover the demand of approximately 80,000 Salvadoran homes on average.
In relation to the SME portfolio, Davivienda El Salvador has registered a growth trend in recent years that averages 12.5 percent. It is projected that, with the reinforcement of the financing provided by IDB Invest, this percentage will increase.
Additionally, IDB Invest will offer advisory services to Banco Davivienda Salvadoreño to originate renewable energy and energy efficiency projects with an emphasis on photovoltaic solar energy generation plants, as well as to establish a system that allows the segmentation, traceability, and measurement of impacts of their green and social wallets.
This transaction potentially contributes to five of the United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).
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 $13.1 billion in asset management and 385 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 Davivienda Salvadoreño
Banco Davivienda Salvadoreño capitalizes on a 136-year history in El Salvador, resulting from the integration of the two oldest banking entities in the country: Banco Internacional, founded in San Salvador in 1880, and Banco Particular del Salvador, founded in 1885. which changed its name to Banco Salvadoreño. At Davivienda we believe in a financial world without barriers that makes life easier for people, companies, cities and countries. For this reason, today we are more than 17,000 people innovating and creating exclusive solutions and offers for 16 million clients every day through 668 offices. We have more than 2,693 ATMs at the regional level. Davivienda is a Colombian bank, belonging to Grupo Bolívar, since 1972 it has dedicated its efforts to enriching the assets of individuals, families and companies. In addition to Colombia, we have operations in Panama, Costa Rica, Honduras, El Salvador and Miami, in the United States.