IDB Invest subscribed Banco Finandina S.A.'s first sustainable bond issuance, aimed at financing green and social projects in Colombia. The bond totaled COP 165 billion (approximately $39.3 million), with IDB Invest subscribing COP 120 billion (approximately $28.6 million). The remaining COP 45 billion (around $10.7 million) were subscribed by other investors. 

The project aims to expand Finandina's green and social portfolios in Colombia. The green portfolio focuses on electric and hybrid vehicles, as well as electric micromobility solutions. These include small and light transport powered by electricity. The social portfolio supports micro, small, and medium-sized enterprises (MSMEs), including those led by women or based in vulnerable regions.

Supporting sustainable transport is crucial for Colombia to meet its greenhouse gas reduction targets and progress toward carbon neutrality. The transport sector is one of the largest consumers of energy in the country, and most of this energy comes from fossil fuels. Therefore, increasing financial support for sustainable transport is vital to achieving the country's emissions reduction goals.

Banco Finandina’s bond was denominated in Colombian pesos for a three-year tenor. It will also follow the Sustainable Bond Principles of the International Capital Markets Association (ICMA).

In addition to the bond subscription, IDB Invest will provide Finandina with advisory services, including the creation of a strategic decarbonization plan. This support will also encompass guidance on gender, diversity, and inclusion to develop an inclusive communication strategy for LGBTQ+ people, along with a specialized value proposition for providing productive credit to Trans people.

According to IDB Invest’s evaluation and methodology, this partnership is expected to contribute to several United Nations Sustainable Development Goals (SDGs): SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals). Additionally, the bond has the potential to advance SDG 1 (No Poverty), SDG 5 (Gender Equality), and SDG 10 (Reduced Inequalities) due to the targeted allocation of resources within its framework.

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 $21 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.

About Banco Finandina

With more than 46 years, Banco Finandina BIC stands out for its commitment to innovation and sustainability, being a pioneer in digital banking in Colombia. Its sustainable approach is supported by actions such as being the first BIC Bank in Colombia, or certifications such as B Corp, the first Colombian bank to obtain it, or Carbon Neutral, certified for 4 consecutive years. It has a diverse workforce, the product of an inclusive hiring policy that prioritizes women, (65% of its staff). Its numbers support it, more than 180,000 clients, a portfolio of more than 3.7 billion pesos and a balance of 2.7 billion in liabilities, in addition to a solvency indicator of 16% in the first half of the year; This has allowed it to receive for 18 years the highest rating BRC1+ in short-term debt and AA+ in the long term. It leads the Vehicle Financing market, with an overall share of 12%, second place in used vehicle financing with an 18% share, and financing hybrids and electric vehicles last year has generated 15% more units than the same period in 2023.