IDB Invest supports financing for medium-sized companies and green projects in Peru with BanBif
IDB Invest, a member of the IDB Group, provided a $25 million subordinated loan to Banco Interamericano de Finanzas S.A. (BanBif) of Peru. The transaction will contribute to strengthening BanBif’s lending capacity to finance medium-sized companies and green projects in the country. The loan has a tenor of twelve years and will support access to finance for midsized businesses, renewable energy and energy efficiency projects, and investments aimed at mitigating the effects of climate change.
With this deal, BanBif will provide financing terms and amounts in accordance with the financing needs of renewable energy and energy efficiency projects. In turn, it will allow BanBif to make investments in more efficient technologies, increasing the productivity of medium-sized companies.
In recent years, the Peruvian financial sector has implemented a series of measures including the Green Protocol, which was established by the Ministry of the Environment and the Association of Banks of Peru. This protocol seeks to promote the transition to a green economy by regulating financial services in Peru. By 2025, all banks are expected to have an environmental and social risk management policy and manual, in addition to incorporating aspects of improving risk management systems.
IDB Invest will complement the financing with technical assistance to support the green financing development strategy for BanBif’s most important sectors.
This operation potentially contributes to five UN Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), and Climate Action (SDG 13).
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 $13.1 billion in asset management and 385 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.
BanBif has been developing its banking operations for 29 years in Peru. Its shareholder is the International Finance Corporation (IFC), a member of the World Bank Group, and has the backing of the IF business conglomerate of Spanish origin which participates in various economic sectors in Peru, Argentina, Colombia, Venezuela, Brazil, Chile and Central America. Currently, BanBif is ranked fifth in the Peruvian banking system and has more than 65 offices nationwide. In addition, it has more than 2,300 BanBif and Global Net ATMs, more than 7,500 Kasnet agents, internet banking, mobile banking and telephone banking.