Ecuador, December 20, 2019— IFC, a member
of the World Bank Group, invested $50 million in a public issuance of green
bonds made by Banco Pichincha, for a total amount of $150 million. This
is the first green bond issue made in Ecuador.
The green bonds are compliant with the International
Green Bond Principles and will help alleviate the country's susceptibility
to climate change. This will allow Banco Pichincha to play a key role in
Ecuador's efforts to reduce greenhouse gas emissions, establish policies
for adaptation to climate change, increase the proportion of renewable
energy in the combination of energy generation, as well as help attract
financial investments towards this type of commitment.
The resources raised by the green bonds will
be directed to finance sustainable buildings and green mortgages, clean
mobility projects, energy efficiency and renewable energy projects, among
other areas that contribute to the mitigation of climate change in Ecuador.
“IFC has been a global pioneer in the development
of the green bond market and works with financial institutions in Latin
America and the Caribbean to promote climate finance. We are pleased to
be part of this historic issue for Ecuador and Banco Pichincha, a strategic
ally of IFC”, said Elizabeth Marcano, IFC Country Manager for the Andean
IFC is one of the world's largest green bond
issuers, with 148 issues in 18 currencies, totaling more than $9.2 billion.
IFC is a member of the Green Bond Principles and is part of its Executive
Committee, which, combined with its experience as an issuer and investor
in green bonds, has allowed us to support several countries globally to
shape the standards and guidelines of green bond issues.
IFC has also been providing advisory services
to support the expansion of Banco Pichincha’s operations in climate businesses,
including energy efficiency, cleaner production and sustainable construction.
The latter is one of the Bank's main priorities, given the benefits that
EDGE certification brings for developers, for end users, and for the environment.
This investment consolidates the strong relationship
between IFC and Banco Pichincha, where we have developed multiple investment
projects, including subordinated debt and loans to finance small and medium-sized
enterprises in Ecuador. Our partnership is also consistent with the IFC
strategy in the country, focused on supporting the promotion of financial
inclusion. IFC's support for Ecuador began when it became a member of the
institution in 1956, and since then it has invested, on its own, about
$847 million of long-term financing.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities where they are needed most. In fiscal
year 2019, we delivered more than $19 billion in long-term financing for
developing countries, leveraging the power of the private sector to end
extreme poverty and boost shared prosperity. For more information, visit
About Banco Pichincha
Banco Pichincha, the largest financial institution
in Ecuador, has assets for $ 10,664 million as of December 2018, equivalent
to 26% of the banking system. After 113 years of activity, it has grown
since its inception as a local bank to become an international financial
entity with a presence in six countries. In Peru it develops an intense
activity in the microfinance segment. In Colombia it focuses on granting
educational and vehicle loans; while in Spain it serves migrants, without
neglecting the business world. Its operations in Miami and Panama also
support bilateral foreign trade transactions.