IDB Invest provided a $50 million loan to Banco Davivienda Salvadoreño (Davivienda ES) through a mobilization conducted with Banco de Santander S.A. to boost green lending for renewable energy and energy efficiency projects, as well as support the growth of its small and medium enterprise (SME) portfolio. The mobilization complements an initial $50 million loan signed in 2020 and fully funded by IDB Invest to support sustainable economic development in El Salvador. 

Access to finance is vital for green investments. El Salvador faces challenges in securing credit for these investments, which affects the adoption of renewable energy. Given its vulnerability to climate change, enhancing financing options is crucial for supporting sustainable solutions. Davivienda ES, the fourth-largest bank in the country, has disbursed $170 million since 2012 for renewable projects and plans to expand its green lending as demand rises.

Davivienda ES is committed to supporting SMEs, which make up over 90% of Salvadoran businesses and have with limited access to credit. Since 2011, Davivienda ES has tailored financial products for SMEs and is currently focusing on enhancing segmentation and impact management to better serve this sector. With these efforts, Davivienda ES aims to strengthen the local economy and boost resilience to climate change.

This disbursement strengthens Davivienda ES’s green lending processes and management of thematic (green and sustainable) portfolios. Additionally, it will also feature climate change mitigation, as Davivienda ES’s green lending portfolio contributes to reduction of greenhouse gas emissions.

Mobilizing resources for sustainable investments is a key aspect of IDB Invest’s Originate-to-Share business strategy. This project is a key example of this new approach.

IDB Invest also provided advisory services to Davivienda ES, which has resulted in supporting risk analysis for its green projects, including improved assessment of photovoltaic technologies and capacity. IDB Invest has also created a green project analysis toolbox and provided training on photovoltaic project structuring and best practices. Additionally, advisory services included developing a system for thematic portfolio segmentation, traceability and impact management, and a strategic plan to better serve green and social segments.

This project is expected to contribute to five of the Sustainable Development Goals of the United Nations (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnerships for the Goals (SDG 17). 

About IDB Invest

IDB Invest 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 $21 billion in assets under management and over 394 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. Visit our website idbinvest.org.

About Banco Davivienda 

Banco Davivienda Salvadoreño capitalizes on a 139-year history in El Salvador. At Davivienda we believe in a financial world without barriers that makes life easier for people, companies, cities and countries. For this reason, today we are more than 1,700 people innovating and creating exclusive solutions and offers for our clients every day through 51 offices and we have more than 200 ATMs. Davivienda is a Colombian bank, belonging to Grupo Bolívar, since 1972 it has dedicated its efforts to enriching the assets of individuals, families and companies. In addition to Colombia, we have operations in Panama, Costa Rica, Honduras, El Salvador and Miami, in the United States.

About Banco Santander

Banco Santander (SAN SM) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first half of 2024, Banco Santander had €1.3 trillion in total funds, 168 million customers, 8,300 branches and 209,500 employees.