IDB Invest, Banco de Bogota announce $230 million sustainability bond
Reuters
Published Mar 17, 2023 05:53PM ET
(Reuters) - The private investment arm of the Inter-American Development Bank's parent group on Friday announced alongside Colombia's Banco de Bogota the issue of a sustainability bond worth $230 million funding social and climate projects.
Following a presentation at an annual banking meeting in Panama, the private investment arm known as IDB Invest said the bonds will be issued on the international market by Banco de Bogota with a term of up to 10 years.
"The issuance of this type of bond will serve as a basis and example for the development of the capital market for this type of instrument in Latin America and the Caribbean," said IDB Invest's Chief Investment Officer Gema Sacristan in a statement.
Sustainability bonds are a form of debt instrument in which the proceeds are used to finance or re-finance a combination of both green and social projects.
Banco de Bogota will use the funds to finance a portfolio of micro, small and medium-sized enterprises led and owned by women, it added, as well as low-income and priority housing.
The Washington-based Inter-American Development Bank, along with its subsidiaries, is among the top providers of development finance in Latin America.
IDB Invest said the funds generated by the new sustainability bond will also be used to pay for green buildings, renewable energy, energy efficiency projects, circular economy and sustainable agriculture.
The firm said it will subscribe for $80 million, while the International Finance Corporation (IFC) will participate with $75 million, FinDev Canada with $50 million and $25 million from a pair of funds managed by Finance in Motion (FiM).
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.