IDB Invest Promotes Green Construction, Mobility with Guatemala’s Banco Agromercantil
Glasgow - November 4, 2021 - IDB Invest, a member of the IDB Group, is providing a $70 million loan to Banco Agromercantil (Bam), a subsidiary of Grupo Bancolombia in Guatemala, to strengthen Bam's capacity to grant loans for green construction and mobility projects and those by small and medium-sized enterprises (SMEs) in order to boost their productivity and performance.
The deal between IDB Invest and Bam was announced during the United Nations Conference on Climate Change (COP26), in Glasgow.
This financing will allow Bam to develop its SME portfolio and that of green loans (construction and green mobility), the latter through the improvement of existing products, the first of their kind in Guatemala, and the design of new products to finance housing sustainable and non-traditional electric and hybrid vehicles. These green finance efforts will be aligned with Guatemala's climate goals under the Paris Agreement.
Forecasts point to a 20% reduction in energy and water consumption in buildings built with green certifications, as well as a reduction of 1,568.6 tons of CO2 equivalent with the electric and hybrid cars to be financed. The 10-year loan will be complemented by technical advisory services that seek to enhance Bam's capabilities to identify investment opportunities in the construction and green mobility sectors. Likewise, training will be provided that will strengthen the knowledge of Bam officials and potential clients and stakeholders in Guatemala's sustainability ecosystem.
This deal is expected to contribute to three of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), 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 US $ 13.1 billion in assets under management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
About Banco Agromercantil de Guatemala
Bam has a history of more than 95 years in the Guatemalan market. It is part of one of the 10 largest financial groups in Latin America, Grupo Bancolombia, and its purpose is to Promote Sustainable Economic Development to achieve the well-being of all, thus aligning itself with the 17 Sustainable Development Goals of the United Nations.