IDB Invest, Davivienda Will Boost Costa Rica’s Climate Financing
The deal includes the mobilization of resources from international and regional banks, including Banco Aliado and Global Bank of Panama
PANAMA CITY – IDB Invest and Davivienda Costa Rica, one of the country’s main private banks, have signed a financing agreement worth up to $115 million to increase its portfolio of green products. The agreement was announced at the Annual Meeting of the Boards of Governors of the IDB and IDB Invest, which is being held in Panama from March 16 to 19, with the participation of James Scriven, IDB Invest’s Chief Executive, and Arturo Giacomin, executive president of Banco Davivienda Costa Rica.
Costa Rica has committed to an absolute maximum of 9.11 million tons of carbon dioxide equivalent in net emissions by 2030, which is aligned with the goals of the Paris Agreement for 2050. The benefits of this reduction in greenhouse gases (GHG) in Costa Rica, it is estimated that between 2020 and 2050, they will exceed approximately US$41 billion in net benefits and will have a positive effect not only at an environmental level but also at an economic and social level.
This project contributes to reducing greenhouse gases (GHG) emissions through the support and financing of the environmental and social agenda of Costa Rica lenders, allowing the offering of customized green financial solutions.
IDB Invest has contributed $30 million and has managed to attract other investors, including Banco Santander, Banco Aliado, Banco BHD and Global Bank, who have contributed the remaining $85 million for this transaction, which is 100% focused on climate financing.
During the ceremony, James Scriven said: "This transaction demonstrates IDB Invest's strong support to promote the region's energy transition agenda together with the private sector and reflects the commitment to maximize impact by attracting institutional investors to the region.”
Arturo Giacomin, stated that "the bank promotes an environmentally correct business model, which seeks to reduce the environmental impact, direct and indirect, in the development of every operation."
In addition, he highlighted that the entity leverages environmental responsibility with an offer of green business lines to business clients and others, through credits destined to mobilize resources for activities, projects and assets that contribute to the mitigation and adaptation of the effects of climate change.
On the other hand, IDB Invest, through a consultancy, will support the design of the monitoring and segmentation system of Davivienda Costa Rica's thematic portfolio, including the green and social finance categories. The advisory services also include a social dimension that will prioritize the identification and study of companies led by women, to improve their future value proposition.
Likewise, IDB Invest will advise Davivienda Costa Rica in the design of green financing lines in the sustainable construction, green mobility and renewable energy segments. Likewise, it will include an environmental and social action plan that will help Davivienda Costa Rica to strengthen its environmental policies and practices.
This agreement is expected to contribute to two United Nations Sustainable Development Goals (SDGs): 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 Davivienda Costa Rica
Davivienda Costa Rica, the multi-Latin brand with its headquarters in Colombia, has more than 40 years of experience and is a benchmark in the financial sector in the country. It maintains subsidiaries with a presence in Costa Rica, Panama, El Salvador, Honduras, and the United States (Miami), with close to 17,800 employees who maintain a common mission, which is to add value to the lives of more than 19.8 million customers through an upright and committed team.