Bogota Leads the Way in Sustainable Finance with Historic Green Bond Backed by IFC and CAF

Cartagena, November 27, 2025. During the National Infrastructure Congress held in Cartagena, Colombia, the Mayor’s Office of Bogotá, the International Finance Corporation (IFC), a member of the World Bank Group, CAF (Development Bank of Latin America and the Caribbean), and the Delegation of the European Union in Colombia celebrated the success of Bogotá’s recent issuance of its first international green bond, while detailing the impact it will have on the city’s development.

The bond, announced a few days ago and structured in Colombian pesos for an amount equivalent to US$600 million (COP 2.3 trillion), marked a milestone in the region by attracting COP 3.1 trillion in demand—1.34 times the amount offered—and allocating 93.4% of the issuance to international investors. This result reflects global market confidence in Bogotá’s fiscal strength and its leadership in urban sustainability.

Recognizing the interest generated by this financial instrument, the institutions held a press conference during the National Infrastructure Congress to delve into the benefits and features of the green bond and answer questions from the media and industry stakeholders. During the event, they explained how the bond’s pioneering structure—where IFC and CAF acted as anchor investors—helped mobilize international private capital, diversify funding sources, and position Bogotá as a leader in sustainable bond issuance. Goldman Sachs and BNP Paribas served as structuring banks.

Bogotá’s Mayor, Carlos Fernando Galán, along with representatives from IFC and CAF and the EU Ambassador, highlighted the positive impact of the bond’s resources on the city, which will fund flagship sustainable mobility projects such as the Bogotá Metro, the San Cristóbal and Potosí aerial cable lines, and the new Calle 13 TransMilenio corridor. These investments will help reduce congestion, cut travel times by more than 70%—especially for low-income residents—eliminate 158,900 tons of CO₂ emissions annually, and advance the goal of making Bogotá more inclusive, efficient, and climate-resilient.

Bogotá’s international green bond is the first of its kind issued by a municipality in Latin America. Its success demonstrates the potential of subnational governments to access international markets and finance high-impact social and environmental projects through collaborative models that integrate expertise, advisory services, and strong public-private partnerships.

“We celebrate the market’s confidence and international support for Bogotá’s fiscal management and sustainable vision. This green bond is a key tool to transform mobility and quality of life in the city,” said Galán.

Elizabeth Martínez de Marcano, IFC Regional Director, stated:
“Bogotá shows how subnational entities can optimize limited fiscal space, complement sovereign resources, and mobilize private capital at scale. This transaction exemplifies IFC’s commitment to innovative models that maximize private capital mobilization for job creation and sustainable development.”

Ángel Cárdenas, CAF Infrastructure Manager, added:
“Subnational governments are decisive actors for sustainable development in Latin America and the Caribbean. Bogotá’s issuance shows how a city with a long-term vision can attract international capital and finance projects that transform mobility and urban resilience.”

François Roudié, EU Ambassador to Colombia, commented:
“Colombia was the first country in Latin America to adopt a green taxonomy similar to the EU’s, which facilitates investment and reflects close cooperation on green finance. We hope these foreign and multilateral investments will help mobilize more Colombian investments.”

The green bond is backed by the Green, Social, and Sustainable Bond Framework officially launched by the city in October 2024, with support from the European Union and the Global Green Growth Institute. Of the total issuance, 93.4% was allocated to international investors and the remaining 6.6% to local investors. The projects financed by the bond will promote cleaner, more efficient, and inclusive urban mobility, directly benefiting millions of residents and supporting Bogotá’s climate and social goals.

About CAF

CAF – Development Bank of Latin America and the Caribbean – aims to promote sustainable development and regional integration by financing public and private sector projects, providing technical cooperation, and offering specialized services. Founded in 1970 and currently composed of 24 countries—22 from Latin America and the Caribbean, plus Spain and Portugal—and 13 private banks, CAF is one of the main sources of multilateral financing and a key generator of knowledge for the region. Learn more at http://www.caf.com.