IDB Invest (in partnership with LAGreen, a green bond fund dedicated to Latin America) and Bancolombia announced the first sustainability-linked bond (SLB) issued by a bank in Latin America and the Caribbean for an amount in local currency equivalent to nearly $150 million.

The bond combines environmental and social objectives: to reduce the carbon intensity of Bancolombia’s portfolio by more than 35% and provide financing to more than 1.5 million low-income people with limited access to finance within the next 5 years.

IDB Invest led the design, conceptualization and identification of the key performance indicators (KPIs) and assisted in the definition of the Sustainability Performance Targets for each KPI (SPT). The issuance follows ICMA’s Sustainability Linked Bond Principles (SLBP).