IFC Invests in Biodiversity Bond Issued by Davivienda to Support Sustainable Finance and Biodiversity Protection in Colombia

Press release from the IFC

Cali, Colombia, October 28th 2024. The International Finance Corporation (IFC), a member of the World Bank Group, has announced an investment of up to US$50 million in a biodiversity green bond issuance by Banco Davivienda, to finance projects aimed at conserving, protecting, and restoring biodiversity and nature.

The projects that can be financed with the bond proceeds include activities related to climate-smart and regenerative agriculture, reforestation, and sustainable freshwater and marine production. By investing in these projects, Davivienda will contribute to the preservation of Colombia's rich biodiversity to promote sustainable practices. The biodiversity bond issuance aligns with IFC's commitment to advancing sustainable finance and biodiversity protection.

Davivienda, the second largest bank in Colombia with presence in Central America (Costa Rica, El Salvador, Honduras, Panamá and Miami), has demonstrated a strong commitment to sustainability. Davivienda aims to have at least 30 percent of its portfolio comprised of sustainable loans by 2030. IFC will also provide knowledge, innovation, and capacity building through advisory services to Davivienda. This support will help Davivienda further develop its green framework and enhance its ability to identify, finance, and monitor biodiversity projects.

IFC's participation in the bond issuance represents an innovative financing instrument, as it supports the second biodiversity bond to be issued globally. IFC's involvement is expected to attract interest from international investors who value IFC's performance standards and expertise in sustainable finance, thereby mobilizing resources for biodiversity protection. Furthermore, IFC's engagement with private companies is part of the broader World Bank Group's efforts, in collaboration with the Financial Superintendency of Colombia, to promote sustainable finance and include biodiversity in Colombia's green taxonomy.

Alfonso García Mora, Vice President of IFC for Europe, Latin America, and the Caribbean, said: “IFC and Davivienda have a long track record of working together to promote Colombia’s sustainability. This investment in the biodiversity bond aims to increase access to financing for initiatives that conserve, restore, and protect Colombia’s biodiversity. We are proud to support Davivienda in this groundbreaking initiative and to reaffirm our commitment to sustainable development and environmental protection in Colombia.”

The investment in Davivienda's biodiversity bond is expected to have significant environmental effects, contributing to biodiversity conservation and positive results with nature. At the market level, IFC anticipates that the project, along with policy dialogues and advisory services, will encourage other market participants to offer biodiversity debt instruments in Latin America and the Caribbean. This will foster the growth of sustainable finance markets and promote a nature-based economy in the region.

“We accompany and encourage our clients in the adoption of agricultural practices that promote reforestation, the use of biological alternatives for crop nutrition, the protection of native species and climate resilience with nature-based solutions. With this biodiversity bond, Davivienda will finance projects with agrosustainable certifications oriented to mitigate land-use change, conserve sensitive ecosystems and protect wildlife, among others", added Javier Suárez, President of Davivienda.

The announcement of the bond issuance was made within the framework of the COP16 activities held in Cali, Colombia, October 21 through November 1.

About Davivienda

At Davivienda we believe in a financial world that simplifies the lives of people, communities, businesses and cities. As a result, today we are a team of more than 18,000 people in Colombia, Panama, Costa Rica, Honduras, El Salvador and Miami, innovating, investing in knowledge, talent and technology, collaborating and seeking to implement best practices worldwide. We do all this to offer everyday solutions and exclusive offers to more than 24.3 million customers, which allows us to contribute to financial inclusion and sustainable development. We are the second largest bank by portfolio in Colombia*, with a network of more than 660 branches and more than 2,800 ATMs in Colombia and in our international subsidiaries. We are one of the companies belonging to the Bolívar Group.

*Financial Superintendence of Colombia.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

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Contacts

Mauricio González Lara

mgonzalezlara@ifc.org