Bogotá, July 12th, 2024. BBVA and the International Finance Corporation (IFC), a member of the World Bank Group, issued a US$15 million first tranche of the world's first biodiversity bond that will amount to US$70 million, with the objective to finance projects that address the key drivers of biodiversity loss, particularly focused on reforestation, regeneration of natural forests on degraded lands, climate-smart and regenerative agriculture, restoration of wildlife habitats, among others.
BBVA in Colombia is the issuing bank and IFC acts as structurer and investor. The operation includes advice to establish eligibility criteria and reporting indicators for activities that help protect, maintain, or improve biodiversity and ecosystem services, as well as promote optimal sustainable management of natural resources. Additionally, IFC will build technical capabilities within BBVA and raise awareness among its clients about financing opportunities for biodiversity in Colombia.
"BBVA is proud to lead this initiative with IFC. It not only represents a commitment to biodiversity and adaptation to climate change, but also an opportunity to generate economic and social development," said Mario Pardo, executive president of BBVA in Colombia.
Alfonso García Mora, vice president for Europe, Latin America and the Caribbean of IFC, said: "Support for conservation projects contributes to mitigating the adverse effects of climate change and safeguarding biodiversity. We are delighted to support BBVA in this initiative, the first of its kind on a global scale and reaffirm once again our commitment to sustainable development and environmental protection in Colombia."
During 2023, BBVA in Colombia financed more than 214.8 billion Colombian pesos in areas aligned with biodiversity, such as land use, terrestrial habitat, ecotourism projects, smart agriculture and conservation of marine habitats, mammals, and birds.
Climate change not only affects biodiversity in animal and natural species, but also affects communities, leading them to situations such as displacement due to floods, crop losses due to droughts and fires. According to data from the World Bank, climate change could generate up to 10 million refugees in Colombia by 2050.
About BBVA Colombia
BBVA Colombia is the main foreign investor in the Colombian financial system and the fifth in the country. It has a presence in the national territory through more than 400 offices and service centers and 1,485 ATMs. It has 5.5 million clients and 6,000 employees, nearly 60% of whom are women. BBVA supports families, entrepreneurs and companies in their future plans, and helps them take advantage of the opportunities provided by innovation and sustainability. Through Bancamía, the BBVA Microfinance Foundation addresses microentrepreneurs financial needs throughout the national territory.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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