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

Proposed

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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08/20/2021

Approval date

N/A

Signed date

N/A

Sponsoring entity

N/A

Team leader

Quinones, Jose Gustavo

Investment type

Financing requested

USD $ 13,251,800

Syndicated amount

N/A

Financing amount

USD $ 12,926,300

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.

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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

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

276.5 Kb

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

194.6 Kb

For inquiries, comments and information requests about the project

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Luis Fernando Correa

POSITION

Administrative and Financial Vice President

PHONE NUMBER

574 365 8861

EMAIL

luisf.correa@ciaempaques.com.co

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices