IDB Invest closed a deal with Banco Continental to support the growth of the bank's sustainable portfolio in Paraguay through a financing package of up to $150 million with a 6-year tenor.

This deal is a result of IDB Invest's commitment to help increase financing for projects with a positive environmental and social impact, in addition to channeling longer-term funds to support key sectors of the economy, promoting efficiency in their production processes in line with the country's objectives in the face of current climate challenges.

Paraguay is among the countries most vulnerable to climate change in the region. As a signatory to the Paris Agreement, it has developed its “National Climate Change Mitigation Plan and Action Programs” in which the government seeks to reduce its emissions by 20% by 2030.

To achieve these objectives, commercial banks play a fundamental role in financing this climate agenda with access to adequate financing to promote projects with a positive environmental and social impact.

As part of the deal, Banco Continental will seek to increase its sustainable portfolio by an annual average of more than 20% in real terms.

Likewise, the project hopes to mobilize resources from institutional investors and thus contribute to expanding Banco Continental's commercial relations to diversify funding sources and alternatives.

For several years, IDB Invest has supported and will continue to support Banco Continental with advisory services that have positively influenced issues related to environmental and social risk management, improvement of products and services for small and medium-sized companies (SMEs) and corporate governance, contributing and implementing recommendations of international standards.

The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Reduced Inequalities (SDG 10), Industry, Innovation and Infrastructure (SDG 11), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Banco Continental

Banco Continental S.A.E.C.A. is an open capital, commercial bank with more than 40 years of experience in the national market. In 1980, the BCP authorized the start of its operations. Its activity is aimed at providing financing to various sectors. It offers a wide range of products and services to the corporate segment, SMEs, individuals and retailers, including trusted businesses and foreign trade services, among others. Banco Continental is one of the largest banks in the Paraguayan financial system, ranked first place in loans, assets and deposits. Banco Continental has 59 branches and more than 1,000 employees, with whom it serves more than 200,000 clients.