Colombia's Davivienda issues COP-433bn green bond to IFC

Colombian bank Davivienda has issued a COP-433-billion (USD 149m/EUR 137m) green bond, which was wholly purchased by the International Finance Corporation (IFC), the latter said on Tuesday.

The deal marks the largest green bond issuance by a private financial institution in Latin America.

Davivienda will use the funds to offer financing to customers for projects that help to fight climate change, in the areas of sustainable construction, cleaner production, energy efficiency as well as renewable energies, including water, biomass, wind and solar projects.

"With this issue, Davivienda is taking another step in support of the development of the green bond market in Colombia and Latin America," said Irene Arias, IFC director for Latin America and the Caribbean. IFC, a member of the World Bank Group, says it has identified more than USD 1 trillion (EUR 917m) in climate financing opportunities in Latin America and the Caribbean till 2040. In Colombia, its see a potential for financing of renewable energies totaling USD 27.5 billion.

The green bond, which has a tenor of 10 years, builds on IFC's long-running relationship with Davivienda that goes back to 1973 when IFC made its first investment Davivienda's parent company.

(COP 1,000 = USD 0.345 EUR 0.317)

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