An amount of $50 million corresponds to the issuance of the first sustainable bond announced by IDB Invest and Banco de la Producción SA (Produbanco SA).
These resources will be used to finance the post-pandemic recovery of small and medium-sized companies in Ecuador. They will also allow green financing with a focus on efficient agricultural technologies, renewable energiesenergy and resource efficiency, among others.
IDB Invest will provide advisory services to Produbanco to define a roadmap that will allow it to achieve its commitment to zero net emissions by 2050. This roadmap will define the objectives and actions required to comply with the commitments and goals of the Banking Alliance for Net Zero Emissions (Abenc).
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The transaction is made up of two amounts: the first, $40 million, destined to support the reactivation and sustainability of SMEs; and a second amount of $10 million, channeled through IDB Invest, from a mixed financing component of the Canadian Climate Fund for the Private Sector in Latin America and the Caribbean (C2F). The latter will be used to finance Produbanco’s green portfolio.
The mixed financing component with C2F includes an economic incentive based on compliance with key performance indicators that are aligned with Produbanco’s objectives.
“To guarantee compliance with the indicators, some milestones will be measured, such as growth goals for green credits, definition of decarbonization goals for the credit portfolio and compliance with standards to be part of the Working Group on Climate-Related Financial Statements. (TCFD, for its acronym in English) ”, the statement says.
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Meanwhile, IDB Invest continues to design and use financing tools to leverage private sector investment and promote climate-resilient development.
This operation is expected to contribute to eight United Nations Sustainable Development Goals (SDGs): zero hunger (SDG 2), gender equality (SDG 5), clean water and sanitation (SDG 6), affordable energy and non-polluting (SDG 7), decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9), sustainable cities and communities (SDG 11) and life of terrestrial ecosystems (SDG 15). (I)
Source: Eluniverso
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