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IDB Invest Issues Local Currency Bond to Finance Green and Social Projects in Colombia

IDB Invest issued a 5-year COP 82 billion (approximately $20 million) sustainability bond in the international market, due January 2029. Record Emerging Market Sustainable Finance Fund (Record) is the sole investor of the bond, that was led by HSBC. This marks IDB Invest's inaugural sustainability bond denominated in Colombian pesos and its first issuance dedicated to funding local currency projects.


The bond proceeds will finance eligible green and social projects in Colombia, in accordance with IDB Invest’s Sustainable Debt Framework, promoting economic growth and the improved well-being of Colombians. The proceeds will support access to inclusive finance, and provide technical and financial support for projects critical to transportation infrastructure, renewable energy and telecommunications, as well as innovative and environmentally sustainable corporate projects.


Financing projects in local currency protects borrowers in Colombia from foreign currency fluctuations, making debt repayments less volatile and more sustainable. Recent examples of IDB Invest’s local currency lending in Colombia include COP loans to finance green mobility and solar power projects in the country.


“At IDB Invest, we are committed to promoting local currency bond markets in Colombia. This type of investment is a powerful tool that allows issuers to finance projects with longer terms and in their local currency,” said Janne Sevanto, Treasurer of IDB Invest. “This reduces the borrowing cost for businesses, supports investment and creates jobs. It also reduces the risk of dependence on foreign currencies for local borrowers. These solutions are an integral tool that contribute to achieving IDB Invest’s mission.”


“We are thrilled to partner with IDB Invest and support their local currency operations in Colombia that benefit social and green projects. Currency volatility is a significant obstacle to the development of a healthy and thriving private sector, and we remain committed to providing sustainable currency solutions that unlock the productivity potential and deliver inclusive income distribution in local communities. We congratulate the issuer on their continued efforts to support private enterprises in local currencies and promote the development of local bond markets,” said Chief Executive Officer Dr. Jan Hendrik Witte, Record Currency Management.


Transaction Summary


Inter-American Investment Corporation (IDB Invest)

Issuer Rating:

Aa1 / AA+ / AAA (Moody’s / S&P / Fitch)


Global Debt Program


COP 82,000,000,000

Settlement Date:

November 8, 2023


11.25 %, denominated in COP, settled in USD

Maturity Date:

January 16, 2029


London Stock Exchange

Clearing Systems:

Euroclear and Clearstream

Lead Manager:

HSBC Bank plc


About IDB Invest

IDB Invest, a member of the Inter-American Development Bank 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 $16.3 billion in assets under management and 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. Information on IDB Invest bonds is available at our Investors page.


About Record

The Record Emerging Market Sustainable Finance Fund is an Article 8 fund under Regulation (EU) 2019/2088 that aims to support the development of local currency markets in low and middle-income economies together with improved access to long-term local currency lending. This unique investment strategy represents a significant innovation in currency markets and a commitment to the development of new sustainable investment products for private investors globally, which Record expects to have broad and growing appeal for years to come.