IDB Invest, Banco Solidario Join Efforts for Ecuador’s Gender & Inclusion Bond
- This will be the first thematic bond in Ecuador that incorporates financing for the elderly and the migrant population.
IDB Invest and Banco Solidario announced the issuance of a gender and inclusion social bond in Ecuador. The bond issued by Banco Solidario will raise $30 million, fully subscribed with an investment from IDB Invest.
The resources from the placement will be used to increase credit to micro-enterprises owned by women and the elderly, and will support Banco Solidario's financial inclusion strategy through loans to micro-entrepreneurs and migrants without access to the financial system.
The deal includes advisory services to help Banco Solidario strengthen its savings strategy with a focus on women and young people in vulnerable conditions. In addition, a value offer in non-financial services will be designed for the migrant segment with the aim of strengthening the migrants’ microenterprise businesses, and thus facilitate their financial inclusion through credit services.
Additionally, IDB Invest has advised Banco Solidario in the design of the methodological framework for the use of funds, which contains the criteria for selection, monitoring and evaluation of projects aligned with the Principles of Social Bonds of the International Association of Capital Markets. Banco Solidario secured an independent verification of the methodological framework, known as a Second Party Opinion, issued by S&P and required for thematic issuances.
This deal is expected to contribute to six United Nations Sustainable Development Goals (SDGs): End of poverty (SDG 1), Gender equality (SDG 5), Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Reduction of inequalities (SDG 10), and Alliances to achieve the objectives (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 $15.3 billion in asset management and 375 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 Solidario
Banco Solidario is a medium-sized Ecuadorian bank with a focus on microfinance. The lender was established in 1996 and its main business is the microcredit portfolio, which has a 55% share of the total portfolio. Solidario is a bank for the inclusion of marginalized sectors, and since its creation it has incorporated more than 1.5 million Ecuadorians into the financial system. Its current inclusion rate is 22.6%. Solidario also has one of the lowest average loan amounts in the system with its microcredit product, through which it serves entrepreneurs with average loan amounts of $3,500 for their microenterprises with a maximum of $100,000 in annual sales. 57% of those who access microcredits are women.