WASHINGTON – IDB Invest has closed a financing agreement with Banco Davivienda in Colombia to expand access to the construction of social and sustainable housing.
The agreement includes a subscription of 300 billion Colombian pesos to the first issuance of a Sustainability-Linked Bond (SLB) by Banco Davivienda S.A.
The bond was issued in accordance with the principles of the International Capital Market Association (ICMA), which define the financial characteristics a bond must have to meet agreed sustainability targets, ensuring transparency, credibility, and impact measurement.
The operation includes financing of up to $800.000 provided by the IKI-LAC Climate Private Sector Mobilisation Fund. This performance-based incentive aims to support Davivienda’s sustainable business strategy and its alignment with international best practices.
In addition to financing, IDB Invest provided technical advisory services to Davivienda for the design of the bond framework and the definition of sustainability indicators and targets. It will also support capacity-building for the construction sector and the implementation of governance methodologies to strengthen environmental and social practices.
With this operation, IDB Invest and Banco Davivienda promote innovative instruments and solutions that contribute to Colombia’s economic and social development.
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 $22 billion in assets under management and more than 440 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: www.idbinvest.org/en.
About Banco Davivienda
Banco Davivienda is a Colombian bank that began operations in 1972 as a savings and housing corporation. Today, with 53 years of market experience, it continues working toward a financial world that makes life easier for people, communities, businesses, and cities. The bank currently has a team of more than 17,000 employees across Colombia, Panama, Costa Rica, Honduras, El Salvador, and Miami, innovating and investing in knowledge, talent, and technology, collaborating and seeking global best practices. All of this allows Davivienda to offer financial solutions to approximately 25.6 million clients, fostering greater financial inclusion and sustainable development. It is currently the second-largest bank in Colombia by assets, loan portfolio, and deposits, with a network of more than 653 branches and over 2,800 ATMs. Davivienda is part of Grupo Bolívar.
About the IKI-LAC Climate Private Sector Mobilisation Fund
The IKI-LAC Climate Private Sector Mobilisation Fund supports and mobilizes private-sector investment in climate change mitigation projects aimed at reducing greenhouse gas emissions in Latin America and the Caribbean. The fund facilitates the testing, replication, and scaling of innovative business models and technologies. Its objectives include contributing to the decarbonization of industry, strengthening the climate resilience of infrastructure and production facilities, and diversifying sectors that depend on fossil fuels to ensure a just transition. Additionally, the fund seeks to attract local institutional investors and promote the development of local financial markets.