- The sustainable bond, which combines green and social criteria, was bought by IDB Invest in its entirety.
- Grupo Bancolombia’s issuance will increase financing for 18 green projects and eight classified as social projects.
IDB Invest, member of the Inter-American Development Bank (IDB) Group, subscribed a bond in its entirety for 657,000 million Colombian pesos with Grupo Bancolombia. It is the first time a private company issues a sustainable bond in Colombia. It aims to increase financing for green and social projects and to reinforce the benefits for sustainable development generated by them.
The sustainable bond issuance will help finance projects within the Bancolombia portfolio that have a measurable environmental and social benefit, following the international standards established in the Sustainable Bonds Principles. Bancolombia will help contribute up to 10 UN Sustainable Development Goals (SDGs) through this issuance: No poverty (SDG 1), Zero hunger (SDG 2), Good health and well-being (SDG 3), Quality Education (SDG 4), Clean water and sanitation (SDG 6), Affordable and clean energy (SDG 7), Decent work and economic growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable cities and communities (SDG 11) and Climate action (SDG 13).
The resources of this issuance will be distributed among 26 projects located in the states of Magdalena, Antioquia, Valle del Cauca, Nariño, Bolívar, Santander, Cundinamarca and Tolima. Of the total projects, eight are categorized as social projects and focus on basic infrastructure and housing of social interest. The resources of the bond will benefit 5,448 families with respect to housing, and more than 10,500 people who will have access to potable water with a basic sanitation project.
The remaining 18 projects are classified as green projects and focus on sustainable construction, energy efficiency and cleaner production. The financing of 15 sustainable construction projects will generate an estimated water and energy savings of 30 percent in a year. In the case of the two energy efficiency projects, the average energy savings will be 30 percent per year, while a cleaner production project will have an annual saving of 20 percent in energy and water.
IDB Invest’s participation raises awareness about the challenges of climate change, and also shows the opportunities for investors to support sustainable solutions, addressing social problems through measurable investments without foregoing financial profitability. The framework of this sustainable bond received a second opinion from Vigeo Eiris, an independent third party specialized in these operations.
Since 2018, IDB Invest has been supporting banks in the region to issue green, social and sustainable bonds. Currently, it is working on projects in Colombia, Mexico, Peru, Brazil, Panama, Barbados, Uruguay and Argentina.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so they can achieve financial results and maximize the region’s economic, social, and environmental development. With a portfolio of $12.4 billion in assets under administration and 342 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services in response to its clients’ needs in a variety of sectors.
Grupo Bancolombia is a financial group with a presence in Colombia and Central America, and it offers its portfolio of financial products and services to more than 14 million active clients. It provides commercial and consumer banking services, stock brokerage, investment banking, financial leasing, factoring, fiduciary services, asset management and private banking, among others.