Banco de Bogotá announced the issuance of its first sustainable subordinated bond in the international market for an amount of 230 million dollars, with the support of IDB Invest.

The proceeds will be used to finance the bank’s social portfolio for micro, small, and medium-sized enterprises (MSMEs) -particularly those led and owned by women- and for low-income and priority housing. Banco de Bogotá will also finance green buildings, renewable energy, energy efficiency projects, circular economy, and sustainable agriculture, among others.

The issuance consists of the subscription of sustainable subordinated bonds in the international market with a term of up to 10 years. The bonds will be subscribed by IDB Invest, acting as the lead investor with 80 million dollars. Other multilateral entities and impact funds participating include the International Finance Corporation (IFC) with 75 million dollars, the Canadian Development Institute (FinDev Canada) with 50 million, and 25 million from LAGreen Fund and eco.business Fund, both managed by Finance in Motion (FiM).

Additionally, IDB Invest has advised Banco de Bogotá in the design of the methodological framework for the use of proceeds, which contains the criteria for selection, monitoring and evaluation of projects, aligned with the Sustainability Bond Guidelines of the International Association of Capital Markets (ICMA).