Washington, D.C./ Medellín, Colombia, June 30, 2010
—IFC, a member of the World Bank Group, signed a risk-management facility with Bancolombia to execute up to $400 million of risk-management transactions. This IFC facility, the first of its kind to a Colombian bank, will strengthen the bank’s ability to provide risk-management instruments to local companies.
Through the facility, IFC will increase the capacity of Colombian companies to access risk-hedging products such as cross currency and interest rate swaps. This will allow these companies to better manage their exposure to foreign exchange and interest rate risk, which could result in lower-income volatility and a more stable cash flow. Risk-mitigation instruments are important in helping local companies forecast costs and revenues, allowing them to reduce risk and focus on their core productive activities.
“We welcome IFC’s support to Bancolombia to address the increasing demand for risk-mitigation instruments among small and medium enterprises in Colombia, the backbone of our economy,” said Jorge Londoño Saldarriaga, Bancolombia CEO. “With IFC’s partnership, Bancolombia will strengthen its position as a market leader and will help fill an important market gap.”
By having IFC as a counterparty on cross currency and interest rate swaps, Bancolombia will be able to cope with the demand of risk-management instruments in particular in the real sector of Colombia, including manufacturing, construction, and tourism.
“With this facility to Bancolombia, IFC is helping address the Colombian market’s needs and is showing its commitment to supporting the local private sector through a diverse range of financial structures and products,” said Enrique Cañas, IFC Manager for Bolivia, Colombia, Peru, and Venezuela. “IFC is partnering with a sector leader in this project to continue supporting the sustainable development of Colombia.”
IFC’s strategy in Colombia focuses on supporting sectors that are essential to social and economic development, including infrastructure, health, education, and public-private partnerships to build ports, roads, and airports. IFC assists leading Colombian companies modernize and expand their businesses internationally. IFC also promotes access to finance for micro, small, and medium enterprises and works on improving the investment climate by simplifying regulations and royalty management.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Bancolombia
With over 130 years of experience, Bancolombia is the largest bank in Colombia, offering a wide range of banking products and services to a diversified individual and corporate customer base of more than 6.9 million customers. Bancolombia and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, pension fund administration, and insurance, among others. The bank’s shares are listed in the New York Stock Exchange since 1995, in addition to the Colombian Stock Exchange. For more information, visit
www.bancolombia.com.co
.
|