# Banco Finandina Issues USD 50 Million Green Bonds in Colombia

- Link: https://perfectnations.com/banco-finandina-issues-usd-50-million-green-bonds-for-sustainable-finance-in-colombia/
- Published: 2024-08-04T22:54:56-05:00
- Author: Preeti Sinha

On 24 July 2024, Banco Finandina BIC S.A., in collaboration with IDB Invest, issued
Colombian Pesos green bonds totaling approximately USD 50 million. The transaction
marks a pivotal step in financing projects with substantial environmental and social
benefits in Colombia. Banco Finandina is the first Colombian bank to obtain certification
as a [B Company](https://perfectnations.com/banco-finandina-issues-usd-50-million-green-bonds-for-sustainable-finance-in-colombia/\"https://www.bcorporation.net/\").

## Structure and Purpose

The green bonds are listed on the Colombian Stock Exchange, Bolsa de Valores de 
Colombia (BVC). They are part of Banco Finandina\’s broader strategy to enhance 
its green and social portfolio. The bond issuance is aimed at funding initiatives
such as green mobility, including hybrid and electric vehicles, as well as supporting
micro, medium, and small enterprises (MSMEs), particularly those led by women and
operating in vulnerable regions of Colombia. This aligns with Banco Finandina\’s
commitment to sustainable development and social inclusion.

The financing will have a tenor of five years and will be amortized on its maturity
day (bullet).

## Financial Details

IDB Invest, a member of the Inter-American Development Bank Group, has taken a leading
role in this initiative, providing 60% of the total funds or USD 30 million. The
remaining 40% is sourced from other investors, demonstrating a strong public-private
partnership in advancing sustainable finance. The bonds are issued under Banco Finandina\’
s Sustainable Debt Framework, which outlines the criteria and projects eligible 
for funding under this green initiative.

## Impact and Advisory Support

The proceeds from these bonds are earmarked for projects that meet stringent sustainability
criteria. In addition to financial support, IDB Invest offers advisory services 
to Banco Finandina. These services include guidance on decarbonization strategies
and initiatives to enhance gender diversity and inclusion within the bank\’s operations
and projects.

This bond issuance not only helps to finance environmentally friendly projects but
also contributes to the broader goals of poverty reduction and closing equality 
gaps in Colombia. The initiative reflects a growing trend in Latin America towards
sustainable finance, with financial institutions increasingly seeking to support
projects that offer both financial returns and positive social and environmental
impacts.

## Conclusion

Banco Finandina\’s green bond issuance, supported by IDB Invest, is a notable example
of how financial instruments can be leveraged to support sustainable development.
The project underscores the importance of collaboration between multilateral development
banks and private sector entities in driving forward the sustainable finance agenda.
As these bonds facilitate the transition to a greener economy, they also set a precedent
for future sustainable financial initiatives in the region.

**Newswire:**

[Holland & Knight Advises IDB Invest on COP$120 Billion Sustainable Bond Subscription for Banco Finandina ](https://perfectnations.com/banco-finandina-issues-usd-50-million-green-bonds-for-sustainable-finance-in-colombia/\"https://www.hklaw.com/en/news/pressreleases/2024/08/holland-knight-advises-idb-invest-on-cop120-billion\\"\")

[Banco Finandina together with IDB Invest promotes sustainability in vulnerable areas of Colombia](https://perfectnations.com/banco-finandina-issues-usd-50-million-green-bonds-for-sustainable-finance-in-colombia/\"https://greenfinancelac.org/resources/news/banco-finandina-together-with-idb-invest-promotes-sustainability-in-vulnerable-areas-of-colombia/\")

[https://idbinvest.org/en/projects/banco-finandina-financing](https://perfectnations.com/banco-finandina-issues-usd-50-million-green-bonds-for-sustainable-finance-in-colombia/\"https://idbinvest.org/en/projects/banco-finandina-financing\")