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Company name

Compañía de Empaques S.A.

Project number

13189-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Colombia

Sector

Manufacturing

Status

In implementation

Disclosed date

07/02/2021

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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08/23/2021

Approval date

08/23/2021

Signed date

12/06/2021

Sponsoring entity

N/A

Investment Operations Department Contact

N/A

Investment type

Syndicated amount

N/A

Financing amount

USD $ 12,915,700

Currency

COP

Project scope and objective

The Project seeks to provide support to Compañía de Empaques S.A. (the “Company”) in the issuance of its first Sustainability Linked Bond (“SLB”). The total amount of the bond will be up to COP 50,000 million, amortizable in five years, regarding which IDB Invest will act as investor subscribing 100% of the issuance. The bond will include financial incentives if the Company meets certain key performance indicators (“KPIs”) related to environmental and/or social issues. The funds of the medium-term bond will be used to finance the expansion of the production of more sustainable packaging and the strengthening of the supply chain made up by about 2,500 fique producers from rural and indigenous communities located in the Department of Antioquia and in areas such as Nariño, Cauca, Boyacá and Cundinamarca in Colombia. 

 

In addition, IDB Invest will support the Company providing technical assistance in the bond issuance preparation by: i) defining the KPIs and goals needed for the SLB and related to the Company’s sustainability strategy to be used as input to develop the issuance framework; and ii) providing the external opinion or Second Party Opinion (“SPO”) to be given as a result of the bond issuance in line with International Capital Markets Association (“ICMA”) requirements, emphasizing that it will be the first transaction of this type for IDB Invest in Colombia.

 

The impact of this project was highlighted on our 2021 Annual Report.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

CIA DE EMPAQUES - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

276.5 Kb

CIA DE EMPAQUES - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)

194.6 Kb

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Contact information

For inquiries, comments and information requests about the project

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Alternatively, you may also use the following contact information :

Client Contact

EMAIL

luisf.correa@ciaempaques.com.co

PHONE NUMBER

574 365 8861

POST OFFICE ADDRESS

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region .