The first green bond with a size of COP 200 billion (USD 66.7m/EUR 56.7m) has been issued in Colombia to support projects that help mitigate climate change effects.
The five-year bond was issued by Banco de Comercio Exterior de Colombia SA, or Bancoldex, with technical support from the Inter-American Development Bank (IDB). The placement on the Bogota Stock Exchange was oversubscribed with demand reaching POS 510 billion, the IDB said on Wednesday.
"We are adding efforts so that the countries of the region can raise private funds in key areas, while contributing to the development of their financial markets helping in the structuring of instruments in their own currencies," said Juan Ketterer, head of the IDB's connectivity, markets and finance division. Bancoldex noted that funds from the bond issue will enable it to finance projects related to sustainable construction, cleaner production, energy efficiency and renewable energy.
Parties having the right to purchase the bonds are pension funds, institutional investors, government entities, multilateral organisations, insurance companies, businesses and the public.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.