• Promotes financial inclusion and sustainability by expanding access to credit for MSMEs, women-led businesses and green investments

IDB Invest supported Banco de América Central, S.A. (BAC Guatemala) in issuing its first sustainable bond to drive financial inclusion and environmental sustainability in Guatemala. The bond, valued up to $140 million with a tenor of up to five years, will provide long-term financing to expand BAC’s social and green portfolios, creating opportunities for micro, small, and medium-sized enterprises (MSMEs), women-led businesses, and green projects. 

IDB Invest will lead the issuance with a subscription of up to $70 million, joined by LAGreen (via Finance in Motion), with $20 million and Proparco with $50 million. The funds will drive green investments in Guatemala while enhancing financial inclusion for underserved communities. The bond will adhere to the International Capital Markets Association (ICMA) Social, Green, and Sustainable Bond Principles.

Approximately 83% of Guatemala’s GDP is concentrated in areas vulnerable to climate impacts. Limited long-term financing hinders green investments, while MSMEs, which represent 98% of businesses, face challenges in accessing credit, particularly women-led and marginalized enterprises due to structural and cultural barriers. 

Thematic bonds offer a solution by embedding sustainability into business strategies, improving transparency, and expanding credit for green projects and underserved sectors to increase productivity. By bridging gaps in financing, IDB Invest strengthens its commitment to economic growth and climate resilience in the region. 

“We are proud to join forces with BAC Guatemala,” said Ignez Tristao, Country Representative of IDB in Guatemala. “Through this alliance, we will contribute to the development of more inclusive, sustainable, and environmentally responsible banking practices in Guatemala through capital markets. This reflects our shared commitment of advancing to a greener and inclusive economy.”

“BAC is reimagining banking as a driver of sustainable progress,” said Eric Campos Morgan, Executive President of BAC Guatemala. “Our Net Positive strategy reflects our commitment to generate lasting value for people, businesses and the environment. This sustainable bond issuance is a significant step in expanding access to green and social financing, reinforcing our mission to create a more inclusive and climate-resilient future for Guatemala and the region.”

In addition to the bond subscription, IDB Invest will provide advisory services to support BAC Guatemala in developing a robust sustainable bond framework aligned with ICMA principles. This includes defining eligibility criteria for use of proceeds, improving green and social portfolio segmentation, and securing a Second Party Opinion (SPO) certification. These efforts will strengthen BAC’s capacity to create impactful sustainable financing solutions.

The project is expected to contribute to five of the United Nations Sustainable Development Goals (SDGs), specifically: Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnership 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/en. 

About Banco de América Central (BAC)

BAC is the leading private bank in Central America, with presence in six countries: Panama, Costa Rica, Nicaragua, Honduras, El Salvador, and Guatemala. It serves more than 4.9 million customers, has over 20,000 employees across the region, and supports more than 100,000 businesses. BAC’s purpose is to ‘Reimagine banking to generate prosperity in the communities it serves.’ Guided by three core values —integrity, excellence, and passion — BAC strives to be a pioneer, proving that banking has the power to maximize economic, environmental, and social value simultaneously, with the same rigor and excellence. Thanks to its regional leadership in digital transformation, innovation, and its people-centered approach, BAC has received more than 60 international awards and recognitions in recent years.  

 About LAGreen

LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment. As an impact investment fund advised by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany's KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).

About Proparco

Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco’s new “Acting together for greater impact” Strategy 2023–2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: proparco.fr/en/strategy.