• IDB Invest structures and subscribes this financial instrument with the objective of increasing financial inclusion.
• Banco Pichincha’s bond makes Peru the fourth country in Latin America to issue a social bond.
• Vigeo Eiris gave a second-party opinion on the social credentials of the bond.

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, structured and subscribed a subordinated bond issued by Banco Pichincha Peru for $13 million over 10 years. It is the first social bond in Peru and the first made by a private bank in Latin America. This issuance is aimed at strengthening the empowerment of women through microfinance, and by financing working capital and improving housing for micro and small enterprises.

This bond aims to contribute to six Sustainable Development Goals (SDGs) of the United Nations Organization: No poverty (No. 1), Gender equality (No. 5), Decent work and economic growth (No. 8), Industry, innovation and infrastructure (No. 9), Reduced inequalities (No. 10) and Sustainable cities and communities (No. 11).

The bond issuance makes Peru the fourth country in Latin America and the Caribbean that has launched a bond of this type, following Chile, Mexico and Colombia. It has a second opinion by Vigeo Eiris, a company specialized in evaluating this type of projects, including the commitments of the issuer, the contribution of the bond to sustainability and the social benefits of the use of funds. As a result of this evaluation, the bonus received the highest possible rating on the Vigeo Eiris assessment scale.

IDB Invest works with financial intermediaries in Latin America and the Caribbean to promote thematic bonds issuances with social and environmental impact. The most recent was the issuance of the first sustainable bond in Argentina and South America with Banco BICE, and IDB Invest is currently working on projects in Ecuador, Colombia, Mexico, Brazil and Uruguay. Through this issuance, IDB Invest contributes to the creation of a new type of asset and the development of responsible investment and impact in the region.

About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.

About Banco Pichincha
Banco Pichincha is a financial institution based in Peru and part of the Pichincha Group of Ecuador. Banco Pichincha focuses on the lower-middle of the pyramid, serving the business sector that participates with 54 percent of the portfolio (with emphasis on SMEs and micro enterprises) and individuals with 46 percent. Banco Pichincha concentrates its operations in the Lima and Callao areas, which represent 81 percent of its portfolio and where it has 41 agencies. The remaining 39 are distributed in different provinces, as well as the entire Carsa2 network. The Bank has more than 1,000 employees and has a local rating of "A" by the rating agency Pacific Credit Rating and "A-" by Class & Asociados S.A.