January 28, 2022
• This is the first social gender bond publicly issued by a financial entity in Colombia with IDB Invest taking on the role of anchor investor.
IDB Invest has completed the partial subscription of social bonds with a gender focus in Colombia, issued by Mibanco, a Credicorp Group company. This is a secondary-market issue in Colombia, of which IDB Invest acquired COP76.5 billion, with a three-year tenor.
These are the first publicly issued bonds in Colombia with IDB Invest taking on the role of anchor investor to attract potential local institutional investors.
Resources from the placement of the bonds — a deal structured by Credicorp Capital — will be used by Mibanco to finance the growth of the portfolio of micro-enterprises that are led and owned by women in Colombia. Likewise, the financing will also contribute to the development of the capital market and thematic bonds both in Colombia and in the region.
Mibanco, a subsidiary of the Credicorp Group, becomes the first microfinance institution in Colombia to be chosen by IDB Invest for the purchase, as an anchor investor, of thematic bonds. Mibanco obtained the local rating ‘AAA’ (Col) from Fitch Ratings last April, the same rating that the bonds have.
IDB Invest will provide technical assistance services to Mibanco in order to develop a plan for diversity and inclusion. To do this, it will carry out a diagnosis of gender gaps with the support of the Women’s Empowerment Principles (WEP) tool, with which an action plan will be designed to close said gaps at the corporate level. The plan includes conducting a diversity awareness workshop for the leadership team.
For its part, Mibanco will serve micro-enterprises led and owned by women through a new credit product called “Mujeres Pa’lante”, focused on the financial inclusion of micro-entrepreneurs who seek agile financing for investment in fixed assets and capital. of work.
As part of the bond issuance process, IDB Invest advised Mibanco on the design of the methodological framework for the use of funds, which contains the criteria for the selection, monitoring and evaluation of projects, aligned with the principles of social bonds of the International Association Capital Markets (ICMA). Mibanco obtained an independent verification of the methodological framework, known as a second-party opinion, issued by Deloitte, an external consultant specializing in this type of project.
This operation is expected to contribute to six United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Reduction of inequalities (SDG 10) and Alliances to achieve the goals (SDG 17).