Ecuador, December 20, 2019— IFC, a member of the World Bank Group, invested $50 million in a public issuance of green bonds made by Banco Pichincha, for a total amount of $150 million. This is the first green bond issue made in Ecuador.
The green bonds are compliant with the International Green Bond Principles and will help alleviate the country's susceptibility to climate change. This will allow Banco Pichincha to play a key role in Ecuador's efforts to reduce greenhouse gas emissions, establish policies for adaptation to climate change, increase the proportion of renewable energy in the combination of energy generation, as well as help attract financial investments towards this type of commitment.
The resources raised by the green bonds will be directed to finance sustainable buildings and green mortgages, clean mobility projects, energy efficiency and renewable energy projects, among other areas that contribute to the mitigation of climate change in Ecuador.
“IFC has been a global pioneer in the development of the green bond market and works with financial institutions in Latin America and the Caribbean to promote climate finance. We are pleased to be part of this historic issue for Ecuador and Banco Pichincha, a strategic ally of IFC”, said Elizabeth Marcano, IFC Country Manager for the Andean Region.
IFC is one of the world's largest green bond issuers, with 148 issues in 18 currencies, totaling more than $9.2 billion. IFC is a member of the Green Bond Principles and is part of its Executive Committee, which, combined with its experience as an issuer and investor in green bonds, has allowed us to support several countries globally to shape the standards and guidelines of green bond issues.
IFC has also been providing advisory services to support the expansion of Banco Pichincha’s operations in climate businesses, including energy efficiency, cleaner production and sustainable construction. The latter is one of the Bank's main priorities, given the benefits that EDGE certification brings for developers, for end users, and for the environment.
This investment consolidates the strong relationship between IFC and Banco Pichincha, where we have developed multiple investment projects, including subordinated debt and loans to finance small and medium-sized enterprises in Ecuador. Our partnership is also consistent with the IFC strategy in the country, focused on supporting the promotion of financial inclusion. IFC's support for Ecuador began when it became a member of the institution in 1956, and since then it has invested, on its own, about $847 million of long-term financing.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About Banco Pichincha
Banco Pichincha, the largest financial institution in Ecuador, has assets for $ 10,664 million as of December 2018, equivalent to 26% of the banking system. After 113 years of activity, it has grown since its inception as a local bank to become an international financial entity with a presence in six countries. In Peru it develops an intense activity in the microfinance segment. In Colombia it focuses on granting educational and vehicle loans; while in Spain it serves migrants, without neglecting the business world. Its operations in Miami and Panama also support bilateral foreign trade transactions.
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Andrea Naveda Comunicaciones Estratégicas y Relaciones Públicas ATIS Ketchum
For Banco Pichincha
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