Banco de la Producción S.A. (Produbanco) together with IDB Invest, issued the first sustainable bond in Ecuador for an amount close to 50 million dollars, with incentives linked to the achievement of objectives in Ecuador.

The purpose of the bond is to finance the post-pandemic recovery of Ecuador’s SMEs. In addition, it will allow green financing with a focus on efficient agricultural technologies, renewable energies, energy efficiency and resource efficiency. The transaction is made up of two tranches, one of 40 million dollars to support the reactivation and sustainability of SMEs, and a second tranche of 10 million dollars, channeled through IDB Invest, and a mixed financing component of the Canadian Climate Fund for the Private Sector in Latin America and the Caribbean (C2F).

IDB Invest advised Produbanco in the design of the methodological framework for the use of proceeds, which contains the criteria for the selection, monitoring and evaluation of projects, aligned with the principles of Sustainable Bonds of the International Capital Markets Association (ICMA). Additionally, it supported Produbanco in obtaining second-party opinion verification, issued by Sustainalitycs. It will also provide advisory services to define a roadmap that will allow the bank to achieve its commitment to zero net emissions by the year 2050.