IDB Invest and Banco W Promote Inclusive Financing for Microenterprises in Colombia's Amazon with a Social Bond

- IDB Invest participates as the anchor investor in the issuance of a financial inclusion social bond.
IDB Invest and Banco W announced the issuance of a social bond aimed at enhancing financial inclusion for microenterprises in Colombia’s Amazon region, including those led by women. This bond is the first of its kind spearheaded by a microfinance institution to support microenterprises in the Colombian Amazon.
The total issuance amount will be up to COP 200 billion (approximately US$46 million) structured in tranches with maturities ranging from two to three years. The initial tranche were backed by IDB Invest as the anchor investor, subscribing up to COP 100 billion, alongside Bancolombia with a contribution of COP 32 billion. The issuance was facilitated in Colombia’s public capital market, with Grupo Bancolombia Capital serving as the structurer, coordinator, and lead placement agent.
The funds raised will be dedicated to expanding the microenterprise portfolio, with a focus on businesses led by women or based in the Amazonian departments of Vaupés, Guaviare, Meta, Caquetá, Guainía, Putumayo and Amazonas. This initiative aims to drive financial inclusion, reduce gender disparities, and support sustainable economic development across the region.
“This social bond represents a significant step toward bridging development gaps and empowering local communities. It aligns seamlessly with IDB Invest’s strategy by fostering greater financial inclusion for microenterprises—particularly those led by women—and advancing sustainable development of Colombia's Amazon region,” said Diego Flaiban, Director and Acting Head of the Financial Sector Division at IDB Invest.
“The rising demand for socially responsible investments reflects a growing investor focus on creating positive social impact while achieving financial returns. The proceeds from this bond issuance will enable us to further support the growth and development of Colombians,” said Rubens Héctor Sandoval, Vice President of Finance and Administration at Banco W.
Financing microenterprises in the Amazon is vital for Colombia's development, as this region accounts for just 0.75% of the total portfolio in the country’s financial system. With its extensive presence in these underserved areas, Banco W is committed to bridging this gap by providing critical resources to entrepreneurs in some of the most remote regions of the nation.
This marks Banco W's second social bond issuance in partnership with IDB Invest, reinforcing their shared commitment to gender equality and financial inclusion. Together, they aim to empower underserved communities. Notably, the gender bond issued by Banco W in 2020 successfully benefited over 71,000 women, showcasing the tangible impact of their joint initiatives.
IDB Invest will also offer advisory services to Banco W to craft a comprehensive value proposition tailored to microenterprises in the Amazon region. This guidance will focus on enhancing access for women entrepreneurs, addressing gaps in financial services, and promoting solutions that drive economic, social, and sustainable development in the Amazon
The project will contribute to several United Nations Sustainable Development Goals (SDGs), specifically: No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest 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. Visit our website idbinvest.org.
About Banco W
A Colombian bank committed to economic and social development, offering financial solutions tailored for microbusinesses and small enterprises. It provides individuals running small businesses or involved in productive activities with both financial and non-financial support, fostering the growth of their businesses and contributing to the development of their economic and family well-being.
About Grupo Bancolombia Capital
Grupo Bancolombia Capital consolidates all of Grupo Bancolombia’s capital market and specialized investment activities, providing services such as Investment Banking, Trust Services, Treasury, and Securities Brokerage. With its strong multi-Latin presence and expertise, Grupo Bancolombia Capital delivers tailored advisory solutions that meet the diverse needs of its clients, driving growth and transformation across the region.