Davivienda agrees with the IFC to issue a biodiversity bond

Within the framework of the COP16 Finance and Biodiversity Day in Cali, a space for discussion and negotiation on the financing goals of the Convention on Biological Diversity (CBD), Banco Davivienda and the IFC signed a subscription agreement for the issuance of a biodiversity bond for more than $210,000 million in the Colombian capital market.

Read: ‘The country is giving signs of acceleration that are being limited’

This bond aims to mobilize resources towards projects that have positive impacts on nature and that protect, conserve and restore the country’s biodiversity, in line with Colombia’s Biodiversity Action Plan for 2030.

Colombia, the second most biodiverse country in the world, hosts 10% of global biodiversity on just 0.7% of the earth’s surface. However, its natural wealth faces significant threats that also affect the national economy. In this context, Davivienda recognizes that it is a key actor in the preservation of biodiversity by directing investments towards sustainable solutions that minimize the negative impact on ecosystems and responsibly use nature’s resources.

That is why Little Red House, in its commitment to making the world a greener place, has designed a financial instrument that responds to the need to address the loss of biodiversity. This bond, approved by the Financial Superintendence of Colombia (SFC), becomes a milestone for the development of the local capital market around the conservation and regeneration of nature.
The issue has a term of four years, and with it the Casita Roja will mobilize resources towards projects aimed at the conservation, management and sustainable use of natural forests through the adoption of restoration practices for degraded soils, as well as the implementation of systems wastewater treatment, conservation and restoration initiatives for wetlands and marine areas, among others.

The structuring process of this issue included a second opinion from Standard & Poor’s (S&P) and expert advice from the IFC for the definition of the categories, eligibility criteria and indicators, which allow identifying and measuring the impact that these projects generate on biodiversity.

Javier Suárez Esparragoza, president of Banco Davivienda, stated during the signing of the agreement: “At Davivienda we accompany our clients in the adoption of practices that promote reforestation, the protection of native species and ecological resilience with solutions based on nature. Thanks to working together with the IFC, our long-standing ally, with this biodiversity bonus, at Casita Roja we will finance projects that limit land use change, conserve sensitive ecosystems and protect wildlife. Additionally, as part of our commitment to the region and the country’s goals, in alliance with the Ministry of Environment and Sustainable Development, we will seek to ensure that at least 10% of these resources contribute to the restoration of mangroves in the Pacific and enhance the development of local communities.

Read: Davivienda buys ePayco payment gateway to strengthen offers for businesses