Banco Promerica of Costa Rica received the authorization of the Superintendency of the Securities Market of Panama to issue sustainable bonds for 50 million dollars. IDB Invest provided the bank a partial credit guarantee facility (PCG) of up to $20 million. This facility will guarantee one or more green, social and sustainable bond issuances in the Panama stock market under the bond program, which will help improve access to financing for small and medium-sized enterprises (SME) and expand their portfolio of green credit in Costa Rica., which have a Partial Credit Guarantee Facility (PCG) of up to 20 million granted by IDB Invest. This facility will allow one or more issues of green, social and sustainable bonds, to improve access to financing for small and medium-sized companies and expand the green credit portfolio in Costa Rica.
The first issuance under the $50 million bond program will be a sustainable bond for $10 million that will have a PCG from IDB Invest of 30 percent of the principal amount issued and in circulation. This issuance will be placed in the Panamanian market through MMG Bank, co-structuring agent and brokerage firm for the bond program.
The issuance seeks to positively impact the SME and the green financing segment in Costa Rica. The transaction will contribute to the development of the capital markets and thematic bonds in Panama and Costa Rica. IDB Invest advised Banco Promerica de Costa Rica in the design of the methodological framework for the use of funds. During the structuring of the bond program, IDB Invest provided advisory services to Banco Promerica of Costa Rica to support learning about the methods and best practices to promote and commercialize the products of the green credit portfolio, as well as support preparations for its scheduled issuance of sustainable bonds.
This operation can potentially contribute to nine Sustainable Development Goals (SDG) of the United Nation.