Photo credit: Royal America. Team members gather together from Royal America's Colombia office.  

IDB Invest and responsAbility are supporting Royal América in the issuance of a green bond in Chile and Colombia. The seven-year, $26 million bond issue seeks to modernize the logistics sector by financing electrical machinery in strategic industries such as food, retail, agriculture, and manufacturing, among others.

The issue will be distributed in two tranches: Tranche A of up to $16 million in Chilean pesos, which will be allocated to Royal America Chile and subscribed by IDB Invest as the anchor investor; and Tranche B of up to $10 million for Royal America Colombia, with ResponsAbility as a co-investor.

This initiative will have a positive environmental impact, as the electric motors will help to reduce the ecological footprint of logistics compared to conventional motors, which rely on fossil fuels.

IDB Invest also supported Royal América through technical advisory services in the development of the reference framework for the green bond issuance. The second-party opinion was prepared by Moody's, confirming the Framework's alignment with the International Capital Market Association (ICMA) Principles.

This issuance consolidates Royal America's position as a key player in sustainability and sets a precedent for the regional market. As part of its commitment, the company will implement an Environmental and Social Action Plan (ESAP) and strengthen its corporate governance.

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 www.idbinvest.org/en.  

About responsAbility Investments AG

responsAbility Investments AG is a leading impact asset manager, specializing in private sector investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, Climate Finance, and Sustainable Food. Since its founding in 2003, responsAbility has deployed more than $16.3 billion in impact investments. With more than 270 employees across seven offices, the firm manages $5.4 billion in assets with a portfolio of approximately 300 companies in 70 countries as of December 31, 2024. Visit www.responsability.com.

Royal America

Royal America is a leading company in the development of electromobility in distribution centers and industrial cargo handling, providing solutions and services in Chile, Colombia, and Ecuador. RA has more than 30 years of experience in the sector with a clear focus on service quality and ensuring operational continuity for its customers. With this Green Bond, the company will be able to continue its mission of helping businesses optimize their operations sustainably. Visit www.royalamerica.com.