IFC Lends $35 Million to Davivienda Costa Rica to Promote Green Energy Projects
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Costa Rica, July, 23 2019 - The International Finance Corporation (IFC), a member of the World Bank Group, announced it has signed a loan of $35 million to support and incentivize the issuance of a green bond by Davivienda Costa Rica, the third-largest private bank in Costa Rica.
The loan will contribute to fund a pipeline of green projects in Costa Rica including sustainable buildings, energy efficiency and small-scale renewable energy generation under the standards for green lending described in the Green Bond Principles, published by the International Capital Markets Association in 2017.
IFC is providing longer-term funding beyond what is currently available in the local financial markets and hopes to play eventually the role of an anchor investor and mobilizing resources upon the green bond issuance on commercial terms from institutional and private investors.
Davivienda Costa Rica is owned by Corporacion Davivienda (Costa Rica), property of Grupo del Istmo, a wholly-owned subsidiary of Banco Davivienda, the third largest bank in Colombia. Banco Davivienda is owned by Grupo Bolivar.
IFC is one of the world’s largest financiers of climate-smart projects for developing countries. Since 2005 – when it started to track climate-smart components of investments and advisory services - IFC has provided more than $22 billion in long-term financing and raised over $15 billion in core mobilization through partnerships with investors.
IFC was also one of the earliest issuers of green bonds, launching a Green Bond Program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. As of June 2018, IFC had issued $7.6 billion across 111 bonds in 13 currencies.