Bancolombia’s $194 Million Sustainable Bond Offering

Gómez-Pinzón advised IDB Invest on the transaction

IDB Invest, member of the Inter-American Development Bank (IDB) Group, subscribed a bond in its entirety for 657,000 million Colombian pesos with Grupo Bancolombia.

It is the first time a private company issues a sustainable bond in Colombia. It aims to increase financing for green and social projects and to reinforce the benefits for sustainable development generated by them.

The sustainable bond issuance will help finance projects within the Bancolombia portfolio that have a measurable environmental and social benefit, following the international standards established in the Sustainable Bonds Principles. Bancolombia will help contribute up to 10 UN Sustainable Development Goals (SDGs) through this issuance: No poverty (SDG 1), Zero hunger (SDG 2), Good health and well-being (SDG 3), Quality Education (SDG 4), Clean water and sanitation (SDG 6), Affordable and clean energy (SDG 7), Decent work and economic growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable cities and communities (SDG 11) and Climate action (SDG 13).

The resources of this issuance will be distributed among 26 projects located in the states of Magdalena, Antioquia, Valle del Cauca, Nariño, Bolívar, Santander, Cundinamarca and Tolima. Of the total projects, eight are categorized as social projects and focus on basic infrastructure and housing of social interest. The resources of the bond will benefit 5,448 families with respect to housing, and more than 10,500 people who will have access to potable water with a basic sanitation project.

The remaining 18 projects are classified as green projects and focus on sustainable construction, energy efficiency and cleaner production. The financing of 15 sustainable construction projects will generate an estimated water and energy savings of 30 percent in a year. In the case of the two energy efficiency projects, the average energy savings will be 30 percent per year, while a cleaner production project will have an annual saving of 20 percent in energy and water.

Gómez-Pinzón advised Corporación Interamericana de Inversiones (BID Invest) with Daniel Londoño Pinzón (Picture), Diana Bogotá Prieto, Cristina Silva Hoyos and Santiago Ariza Góngora.

Involved fees earner: Diana Bogotá Prieto – Gómez-Pinzón; Daniel Londoño – Gómez-Pinzón; Cristina Silva Hoyos – Gómez-Pinzón;

Law Firms: Gómez-Pinzón;

Clients: IDB Invest;

Author: Ambrogio Visconti.