IDB Invest and Equirent Promote Sustainable Mobility in Colombia for a More Sustainable Future

IDB Invest release

IDB Invest has approved $20 million in financing for Equirent to support the growth of the electric and hybrid vehicle fleet, promoting sustainable transportation solutions and reducing carbon emissions in Colombia.

The financing includes a loan of up to $10 million financed by IDB Invest and the remaining $10 million from institutional investors. The project aligns with the country's goal of promoting sustainable mobility and mitigating climate change. Equirent plans to increase the fleet of low-emission vehicles from approximately 470 in 2023 to more than 2,800 units by 2029.

Equirent is a leader in the vehicle leasing industry in Colombia and aims to transform the local market by offering a greater number of electric and hybrid vehicles, both for companies and individuals, as part of its strategy to reduce its environmental impact and strengthen its presence in the sustainable transport sector.

The financing agreement is part of IDB Invest’s “Originate-to-Share” strategy to mobilize private capital from institutional investors towards sustainable projects. This loan will help Equirent diversify its sources of financing, attract new investors and contribute to the growth of the green economy in Colombia.

In addition, IDB Invest will provide technical assistance to enable Equirent to expand its focus on women-led or women-owned small and medium-sized enterprises (SMEs) in the leasing of electric vehicles. It will also optimize the life cycle management of electric vehicle batteries, promoting a fair transition towards a circular and greener economy.

It is expected to contribute to the following United Nations Sustainable Development Goals (SDGs); Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).