Bogota, Colombia, December 5, 2016—Bancolombia,
Colombia’s largest commercial bank, has issued its first green bond, raising
350 billion Colombian pesos—equivalent to $115 million—to expand financial
services for private sector investments that help to address climate change.
This marks the first green bond issued by a commercial bank in Latin America.
IFC, a member of the World Bank Group, is the sole investor in the bond.
IFC is one of the earliest issuers of green bonds, having launched a green
bond program in 2010 to help catalyze the market and unlock investment
for private sector projects that support renewable energy and energy efficiency.
To date, IFC has issued $5.6 billion in green bonds in a range of currencies,
including two benchmark $1 billion issuances that were, at the time, the
largest such issuances in the markets. IFC also plays a leadership role
in developing guidelines and procedures for the green bond market, and
in supporting green bond issuances of private sector companies in emerging
Bancolombia President Juan Carlos Mora said: “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, said: “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.”
By supporting green buildings and other climate-smart projects, the Bancolombia
bond will help Colombia meet the challenge of reducing its emission of
pollutants by 20 percent by 2020.
IFC is planning to expand its regional portfolio in Latin America earmarked
for urban infrastructure, such as buildings, transport, waste management,
energy, water and sanitation, and environmentally friendly telecommunications.
IFC will also continue to support the development of financial instruments
such as green bonds to ensure that capital markets maintain their role
as catalysts for climate financing.
In addition, as part of its sustainability strategy, Bancolombia has broken
important ground by introducing green credit lines with its own resources,
as well as by incorporating second-floor bank products and lines financed
from international cooperation resources. This green bond issue is the
most recent initiative of the organization in this area. This operation
was structured by Banca de Inversion Bancolombia.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org
Bancolombia is a growing, profitable, sustainable, and efficiency-seeking
financial group that helps people realize their dreams. The bank seeks
to establish lasting relationships, based on trust, closeness, respect,
inclusion and warmth. With over 141 years of history and with a presence
in 10 countries, Bancolombia offers a wide range of product offerings and
financial services to more than 10 million active clients. It provides
commercial and consumer banking services, stock brokerage, investment banking,
financial leasing, factoring, fiduciary services, asset administration,
and private banking, among others.