Invest in
green innovations
Invest in
green innovations
The LAGreen Fund invested $10m in Banco de Bogotá, Colombia, $230m sustainable bond issuance. The bond was dedicated to promoting projects with positive environmental and social impact, while also strengthening the bank’s capital base.
Measurable impact of the bond
*Selected figures from public bond reporting as at year end 2023
LAGreen's work in Colombia
LAGreen aims to promote sustainability practices and grow the green bond market in Latin America and the Caribbean. It achieves this by better connecting international capital markets to green investments. This bond issuance demonstrates the versatility of thematic bonds and helps issuers with strong sustainability commitments to get better access to capital.
SDGs Supported
1, 2, 5, 6, 7, 8, 9, 10, 11, 12, 13
Use of proceeds
In the first Basel III subordinated thematic bond in Colombia, LAGreen’s investment is being channeled towards projects in renewable energy production, climate resilience, sustainable transport, water and energy efficiency, and circular-economy solutions.
Purpose of the partnership between LAGreen and Banco de Bogotá
The largest member of Grupo Aval, which has a broad presence in Central America, Banco de Bogotá has influence across the region. With a sustainability strategy already in place, this issuance helps fulfil its sustainability commitments and position the bank as a leader in this field. As such, the bank can spread best practices and help build the market for green finance in Colombia and Latin America.
Impact of the partnership
- Supports regional renewable energy production, climate resilience, sustainable transport, water and energy efficiency, and circular economy solutions
- Drives growth in green finance in Colombia and beyond, by demonstrating the commitment to sustainability of large financial institutions
- Spreads reporting and sustainability best practices across the region
- Incentivizes issuers to focus on environmental and social considerations
Support beyond the investment
LAGreen’s advisory and capacity building service supported the bank with the preparation of its yearly sustainable bond impact reporting.
LAGreen’s support though the issuance of the Sustainable Bond has been of great value for Banco de Bogotá to continue promoting sustainable financing in the country…
Impact Spotlight
One example of use of proceeds from this bond issuance is the improvement and optimization of a recycling plant in Tocancipá-Cundinamarca. Improvements include replacing components, and upgrading and adapting water systems, for the recovery and use of certain post-consumer plastics. This project will contribute to the region’s waste management by improving circular practices and avoid 2,682 CO2eq/year upon project completion.
