March 11, 2025
IDB Invest supported Banco de América Central, S.A. (BAC Guatemala) in issuing its first sustainable bond to drive financial inclusion and environmental sustainability in Guatemala. The bond, valued up to $140 million with a tenor of up to five years, will provide long-term financing to expand BAC’s social and green portfolios, creating opportunities for micro, small, and medium-sized enterprises (MSMEs), women-led businesses, and green projects.
IDB Invest will lead the issuance with a subscription of up to $70 million, joined by LAGreen (via Finance in Motion), with $20 million and Proparco with $50 million. The funds will drive green investments in Guatemala while enhancing financial inclusion for underserved communities. The bond will adhere to the International Capital Markets Association (ICMA) Social, Green, and Sustainable Bond Principles.
Approximately 83% of Guatemala’s GDP is concentrated in areas vulnerable to climate impacts. Limited long-term financing hinders green investments, while MSMEs, which represent 98% of businesses, face challenges in accessing credit, particularly women-led and marginalized enterprises due to structural and cultural barriers.
Thematic bonds offer a solution by embedding sustainability into business strategies, improving transparency, and expanding credit for green projects and underserved sectors to increase productivity. By bridging gaps in financing, IDB Invest strengthens its commitment to economic growth and climate resilience in the region.
“We are proud to join forces with BAC Guatemala,” said Ignez Tristao, Country Representative of IDB in Guatemala. “Through this alliance, we will contribute to the development of more inclusive, sustainable, and environmentally responsible banking practices in Guatemala through capital markets. This reflects our shared commitment of advancing to a greener and inclusive economy.”
“BAC is reimagining banking as a driver of sustainable progress,” said Eric Campos Morgan, Executive President of BAC Guatemala. “Our Net Positive strategy reflects our commitment to generate lasting value for people, businesses and the environment. This sustainable bond issuance is a significant step in expanding access to green and social financing, reinforcing our mission to create a more inclusive and climate-resilient future for Guatemala and the region.”
In addition to the bond subscription, IDB Invest will provide advisory services to support BAC Guatemala in developing a robust sustainable bond framework aligned with ICMA principles. This includes defining eligibility criteria for use of proceeds, improving green and social portfolio segmentation, and securing a Second Party Opinion (SPO) certification. These efforts will strengthen BAC’s capacity to create impactful sustainable financing solutions.
The project is expected to contribute to five of the United Nations Sustainable Development Goals (SDGs), specifically: Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).