Bancolombia has also become the first LATAM commercial bank to issue a green bond.
While much of the recent LATAM green finance focus has been on Brazil and Mexico, Colombia has stepped into the limelight with its first 350bn Peso (USD 115m) green bond from their largest commercial bank.
Bancolombia will use the proceeds from the issue to expand financial services for private sector investments that support addressing climate change. In particular, the issue will back renewable energy and sustainable buildings. We look forward to seeing additional use of proceeds information in the coming days.
The International Finance Corporation (IFC) was the sole investor in the bond.
By supporting green buildings and other climate-smart projects, the Bancolombia bond will help Colombia meet the challenge of reducing its carbon emissions by 20 percent by 2030.
A second opinion has been provided by Deloitte and the underwriter is Banca de Inversión Bancolombia.
Who’s saying what
Juan Carlos Mora, Bancolombia President:
'This bond is part of our corporate commitment to sustainability. We want to reduce our direct environmental footprint and encourage clients and partners to do the same by providing services and products that enable them to invest in areas like renewable energy and sustainable buildings. By doing this we continue to realize our aim of improving the lives of people and businesses by providing them with opportunities to enjoy a better future.'
Carlos Leiria Pinto, IFC manager for the Andean Region:
'Addressing climate change is a priority for IFC, and green bonds are a powerful mechanism to channel investment for climate-smart investments. By investing in the first green bond issued by Bancolombia, we hope to pave the way for other issuers and investors and contribute to the development of the green bond market in Colombia.'
A boost for GB development
Colombia has been one of our Climate Bonds priorities for LATAM throughout 2016 and we’ve undertaken various engagements. We are now working with the Department on National Planning and other groups to lay the foundations for a domestic green bond market. Bancolombia has given the process a huge confidence boost.
While we would have preferred that the bond was offered to local investors, we are heartened by the indications there are more to come in 2017.
Congratulations all round!!
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