The project consists of a subscription to a social gender issue equivalent in Colombian pesos of up to US$100 million, to be issued by a Colombian entity through an offer on Colombia’s second market. The issue will have a term of up to seven years, with a balloon payment of the principle upon maturity. The proceeds from the issue will be used to grow the entity’s portfolio of loans aimed at projects promoting gender equality in the country, in line with UNDP Sustainable Development Goal 5 on gender equality. A methodological framework will be established setting eligibility criteria and impact indicators to enable the proper selection and monitoring of projects to receive financing.
IDB Invest will provide technical assistance to obtain a second opinion confirming the suitability of the methodological framework used. IDB Invest will also help the client build a gender-based commercial strategy.
With the subscription to and structuring of Gender Social Bonds, IDB Invest seeks to help close the gaps that women face in the labor market and in securing leadership positions, as well as help provide them greater and better access to the financial system. Additionally, it aims to give the issuers incentives to become national leaders on gender issues and support the implementation of business strategies with a gender component that promote the social and economic empowerment of women.