BBVA Colombia and the International Finance Corporation (IFC) are set to issue the financial sector’s first biodiversity bond.
BBVA will issue a total of $50 million, with funds allocated to finance projects focused on reforestation, the regeneration of natural forests on degraded land, mangrove conservation and restoration, climate-smart agriculture, and wildlife habitat restoration, among other initiatives.
Beyond the investment, the transaction will include advisory services aimed at establishing eligibility criteria and indicators that promote best practices in sustainable management of natural resources.
Mario Pardo, BBVA Colombia’s country manager, stated, “Colombia is the world’s most biodiverse country per square kilometer, and this is a huge responsibility for those of us who live there. Our mission is to preserve this biodiversity. For this reason, it brings BBVA great pride to lead this initiative with IFC. It represents a commitment to biodiversity and adaptation to climate change, as well as an opportunity for social and economic development.”
Colombia boasts remarkable biodiversity, hosting 14 percent of the world’s known plant species, second only to Brazil, and nearly 4,500 bird species, which accounts for one third of all bird species globally, making it the most bird-diverse country on the planet.
In 2023, BBVA in Colombia allocated three billion pesos towards environmental conservation initiatives, marking a nearly 40 percent increase compared to the previous year.
Alfonso García Mora, vice president of the IFC for Europe, Latin America, and the Caribbean, remarked, “Support for conservation projects helps mitigate the adverse effects of climate change and protect biodiversity. This upcoming bond issue has the potential to enhance access to financing for initiatives that conserve, restore, and protect biodiversity in Colombia.”
Learn more about the latest innovations in the sustainable finance sector at Finextra’s annual Sustainable Finance Live conference, taking place on 8 October 2024.