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IDB Invest and BBVA Peru Announce the First International Private Issue of a Social Bond to Support Women Entrepreneurs

  • The deal seeks to expand financing for women-owned micro and small enterprises
  • IDB Invest led the operation with an annual investment of $75 million out of a total amount of $200 million in two series, including co-investors

 

BBVA Perú, in collaboration with IDB Invest, launched its first international private gender social bond, and the first with performance-based incentives. The funds will boost financial inclusion in Peru, expanding access to credit for micro and small businesses led by women. This issuance is a milestone in the Peruvian banking sector, promoting access to financial resources and empowering female entrepreneurs.

 

The deal includes two series of senior bonds for a total of up to $200 million, over a period of five years. In the first series, IDB Invest led the operation as an investor with $75 million, while Corporación Financiera de Desarrollo S.A. (COFIDE) contributed $25 million. The remaining $100 million will be provided by additional investors, boosting the development of the thematic bond market in Peru.

 

The transaction is supported by the Women Entrepreneurs Financing Initiative (We-Fi), an alliance that aims to expand financing and access to financial markets for companies that are owned by or led by women.

 

Through this initiative, IDB Invest will provide BBVA Perú a monetary bond of up to $190,000, subject to the fulfillment of annual objectives linked to the growth of the portfolio of small female companies in the portfolio of BBVA Perú.

 

IDB Invest will also provide advisory services using We-Fi funds to strengthen BBVA Peru's strategy, supporting it to fulfill the objectives of the monetary bond and the purpose of the bonus. The advisory services will allow us to create a value proposition for the bank for the segment of women entrepreneurs and develop tools that drive greater financial inclusion in the country.

 

“This international issuance of a social bond by a Peruvian bank marks a significant achievement in the promotion of sustainable and inclusive finance. IDB Invest's role as an investor reflects our commitment to supporting women entrepreneurs and sustainable economic development,” said Marisela Alvarenga, head of Industries and Crosscutting Themes (a.i.) at IDB Invest.

 

“It is estimated that 4 out of 10 Peruvian entrepreneurs are women. The social bond that we are issuing will provide opportunities for growth and development to all those entrepreneurs who seek to boost their businesses and generate better living conditions for their families,” said Fernando Eguiluz, CEO of BBVA Perú.

 

"With this operation we fulfill our role as an investor in promoting sustainable emissions and generating impact in strengthening micro and small enterprises led by women. We hope to see other issuers using sustainable instruments, knowing that they can count on COFIDE's participation as an investor," said Jorge Velarde, president of COFIDE.

 

This deal contributes to the following Sustainable Development Objectives (ODS) of the United Nations: Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Alliance to Achieve the Objectives (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/en

 

About BBVA Perú

BBVA is a global financial group with a customer-centric vision, which currently has more than 71 million active customers and more than 121,000 employees. BBVA is present in more than 25 countries, has a leadership position in the Spanish market, is the largest financial institution in Mexico and operates with leading franchises in South America and Turkey. Additionally, it has an important investment, transactional and banking business of capital markets in the United States.

 

About Women Entrepreneurs Finance Initiative 

The Women Entrepreneurs Financing Initiative (We-Fi) aims to unlock financing for women-owned companies (PYME Mujer) in developing countries. We-Fi partners include 14 donating governments, six multilateral development banks as implementing partners and many other stakeholders from the public and private sector around the world.

 

About COFIDE

This is the Development Bank of Peru. A company committed to boosting the sustainable development of Peru, enabling access to resources and opportunities, for people and companies. Its strategy is based on generating development through triple-result management, with the objective of making a positive impact in the economic, social and environmental spheres.