San José, Costa Rica, July 22nd, 2019. The International Finance Corporation (IFC), member of the World Bank Group, has signed a loan of US$35 million to support and incentivize the issuance of a green bond by Davivienda Costa Rica, the third largest private bank in Costa Rica.
The loan will contribute to fund a pipeline of green projects in Costa Rica including sustainable buildings, energy efficiency and small-scale renewable energy generation under the standards for green lending described in the Green Bond Principles, published by the International Capital Markets Association in 2017.
Luc Grillet, Senior Manager for Central America and the Caribbean for IFC, declared: “Our loan to Davivienda directly addresses IFC´s strategic objective of increasing capacity for climate-smart and environmentally sustainable development, while also helping the Costa Rican government achieve its goal of becoming carbon neutral by 2021.”
IFC is providing longer-term funding beyond what is currently available in the local financial markets and hopes to play eventually the role of an anchor investor and mobilizing resources upon the green bond issuance on commercial terms from institutional and private investors.
Federico Chaves, Finance Director of Davivienda Costa Rica, said: "The loan signed by IFC and Davivienda Costa Rica will finance a series of green projects that include sustainable buildings, energy efficiency and renewable energy generation, with the objective of offering continuous support to our customers and stay aligned to our Sustainability Strategy. " And he added: "In Davivienda Costa Rica we want to be leaders in green financing for the private sector. We will continue working and innovating to be a leader among private banks in green financing in Costa Rica.”
Davivienda Costa Rica is owned by Corporacion Davivienda (Costa Rica), property of Grupo del Istmo, a wholly-owned subsidiary of Banco Davivienda, the third largest bank in Colombia. Banco Davivienda is owned by Grupo Bolivar. In 1973, IFC made its first investment in Grupo Bolívar, Davivienda’s parent company and one of the main financial groups in Colombia. Since that time, IFC has provided lines of credit and capital investments to the bank. In 2007, IFC provided financing to support Banco Davivienda’s purchase of Granbanco (formerly Bancafé) in Colombia.
IFC is one of the world’s largest financiers of climate-smart projects for developing countries. Since 2005 – when it started to track climate-smart components of investments and advisory services - IFC has provided more than $22 billion in long-term financing and raised over $15 billion in core mobilization through partnerships with investors. IFC was also one of the earliest issuers of green bonds, launching a Green Bond Program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. As of June 2018, IFC had issued $7.6 billion across 111 bonds in 13 currencies.
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 in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 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 Davivienda
Here at Davivienda we believe in an unhindered financial world that makes life easier for people, communities, businesses and cities. That is why we are more than 17,000 people in Colombia, Panama, Costa Rica, Honduras, El Salvador and Miami, innovating, investing in knowledge, talent and technology, creating alliances and seeking best practices around the world, with the purpose of offering everyday solutions and exclusive offers to 10 million customers, allowing greater financial inclusion and increasing sustainable development. We are currently the second-largest bank by loans in Colombia*, with a network of 713 branches and more than 2,600 ATMs in Colombia and our international subsidiaries. We are part of Grupo Bolívar, and since 1972 we have devoted our efforts to enrich people's lives, supporting them in the construction of their personal equity, that of their families and their companies, as well as in the development of the business, commerce, and rural sectors, among others.
*Financial Superintendence (Figures as of March 2019)
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Contact IFC: Mauricio González Lara mgonzalezlara@ifc.org Tel 5255-30980248
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