IDB Invest and Banco Promerica Issue the First Sustainable Bond in El Salvador
IDB Invest and Banco Promerica S.A., El Salvador (Banco Promerica), joined forces to issue the first sustainable bond in El Salvador to finance green and social projects. The $20 million issuance has been fully subscribed by IDB Invest. This deal is part of the first sustainable bond issuance program in El Salvador for a total amount of $100 million, with a tenor of 5 years. This is also the first issuance of a thematic bond in the country.
The proceeds from the placement of the bonds will be used to finance new credits aimed at the social portfolio of small and medium-sized companies (SMEs), as well as companies led by women and young people. They will also support Banco Promerica's green portfolio. It is expected that increasing the size of these portfolios will contribute to access to financing in these segments in El Salvador.
“At IDB Invest we are pleased to contribute to the sustainability of El Salvador through the country's first sustainable bond. This issuance with Banco Promerica will allow the promotion of small and medium-sized enterprises, support companies led by women and young people and contribute to renewable projects through the expansion of their green portfolio. We are consistent with our Vision 2025 by expanding access to financing for SMEs in the region, directing our efforts to the most vulnerable sectors of the economy,” states James Scriven, CEO of IDB Invest.
As part of the bond issuance process, IDB Invest provides advisory services to Banco Promerica on the segmentation of its portfolio, the definition of key indicators and the design of the methodological framework for the use of funds, which contains the selection, monitoring and evaluation criteria of projects, aligned with the Green and Social Bond Principles of the International Capital Markets Association (ICMA). IDB Invest also supported Banco Promerica in obtaining an independent verification of the methodological framework, known as a second-party opinion, issued by Pacific Corporate Sustainability (PCS), an external consultant specializing in this type of project.
“Sustainability is part of Banco Promerica's corporate strategy. We believe that financing sustainability will guarantee the future of new generations. We are a Group that seeks to achieve a positive impact by balancing economic development, social investment and environmental viability in a sustainable manner. This requires supporting projects for SMEs through the issuance of this first sustainable bond in El Salvador, which will help in the advancement and leadership of women and young entrepreneurs, under a responsible investment approach and an adequate management of resources,” states Lázaro Figueroa, President of Banco Promerica.
With this issuance, IDB Invest reaffirms its commitment to strengthen and support access to financing for SMEs in El Salvador, contributing to the development of the capital market and thematic bonds in the region. IDB Invest will also continue to contribute to the design and use of innovative financing tools to leverage private sector investment and promote climate sustainability.
This deal is expected to contribute to ten United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Gender Equality (SDG 5), Clean Water and Sanitation (SDG 6), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Sustainable Cities and Communities (SDG 11), Climate Action ( SDG 13) and Life on Land (SDG 15).
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 $14.8 billion in assets under management and 376 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 Promerica El Salvador
Banco Promerica El Salvador is part of Grupo Promerica, a financial group with a presence for 30 years in 9 countries in Central America, Panama, the Dominican Republic and Ecuador. It began operations in El Salvador in 1996, has 50 service points nationwide and is characterized by innovation in its products and services, serving the different market segments with an important focus on the consumer sector and SMEs. Supported by innovation and constant strengthening of its service culture, Banco Promerica El Salvador continues to reinforce its commitment to the development of its clients, companies and projects, helping them to overcome their limits to grow.