IDB Invest and BBVA Colombia Announce Successful Placement of First Biodiversity Bond by a Financial Institution in LAC
- The bond's resources will support the preservation of biodiversity in Colombia
CALI, Colombia – IDB Invest and Banco Bilbao Vizcaya Argentaria Colombia S.A. (BBVA Colombia) have completed the placement of the first thematic bond with an exclusive focus on biodiversity projects in Latin America and the Caribbean (LAC). This landmark bond, totaling up to $70 million, is structured in two tranches: one of up to $35 million subscribed by IDB Invest, and another up to $35 million subscribed by the IFC. The proceeds will support green projects aimed at combating biodiversity loss in Colombia. The announcement was made today at the United Nations Conference on Biodiversity (COP16).
The bond enables BBVA Colombia to expand its biodiversity-focused portfolio, actively supporting efforts to protect and preserve the country’s natural ecosystems. Six key biodiversity categories have been defined for this initiative, grounded in the IFC's biodiversity finance reference guides and aligned with the objectives of the Global Biodiversity Framework. These categories include: productive land use and sustainable agriculture, freshwater and sustainable marine production, nature-based solutions, waste and plastic management, forestry and plantations, and tourism and ecotourism services.
Biodiversity loss is one of the most pressing global challenges, with more than one million species at risk of extinction and a significant portion of the world's GDP dependent on nature’s ecosystem services. In Latin America and the Caribbean, a region that boasts six of the most biodiverse countries on the planet, this invaluable biological wealth is rapidly declining. Colombia, the second most biodiverse country globally, is home to 10% of the world’s biological diversity. Given these urgent challenges, investing in projects that prioritize biodiversity conservation is critical to safeguarding ecosystems and ensuring long-term sustainability for future generations.
BBVA Colombia's biodiversity thematic bond is an innovative and necessary response to the biodiversity crisis. This bond becomes one of the first instruments of the private sector to chart the transition path towards a positive nature and find innovative ways to close biodiversity financing gaps and marks an important step towards strengthening investment in conservation in the region.
The project also includes the signing of a technical advisory contract where IDB Invest will support BBVA Colombia in defining a model for managing risks related to nature and supporting the development of its biodiversity strategy. The development of the biodiversity strategy seeks to integrate the model of risks related to nature into the strategy and also include opportunities for the protection, conservation and restoration of biodiversity.
The transaction with BBVA Colombia is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): SDG 2 (Zero Hunger), SDG 12 (Responsible Consumption and Production) and SDG 15 (Life on Land).
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 BBVA
BBVA in Colombia is the largest foreign investor in the Colombian financial system and the fifth largest in the country. It has a presence in the country through more than 400 branches and service centers and 1,485 ATMs. It has 5.5 million customers and 6,000 employees, of whom nearly 60% are women. Through its activities, BBVA contributes to the progress and well-being of all its stakeholders: shareholders, customers, employees, suppliers and society in general. In this sense, it supports families, entrepreneurs and companies in their future plans, and helps them take advantage of the opportunities provided by innovation and sustainability. For microentrepreneurs, the BBVA Microfinance Foundation through Bancamía. Currently, there are more than 1.6 million microentrepreneurs who are Bancamía customers in Colombia.