November 5, 2021
IDB Invest, a member of the IDB Group, is providing a $70 million loan to Banco Agromercantil (Bam), a subsidiary of Grupo Bancolombia in Guatemala, to strengthen Bam’s capacity to grant loans for green construction and mobility projects and those by small and medium-sized enterprises (SMEs) in order to boost their productivity and performance.
The deal between IDB Invest and Bam was announced during the United Nations Conference on Climate Change (COP26), in Glasgow.
This financing will allow Bam to develop its SME portfolio and that of green loans (construction and green mobility), the latter through the improvement of existing products, the first of their kind in Guatemala, and the design of new products to finance housing sustainable and non-traditional electric and hybrid vehicles. These green finance efforts will be aligned with Guatemala’s climate goals under the Paris Agreement.
Forecasts point to a 20% reduction in energy and water consumption in buildings built with green certifications, as well as a reduction of 1,568.6 tons of CO2 equivalent with the electric and hybrid cars to be financed. The 10-year loan will be complemented by technical advisory services that seek to enhance Bam’s capabilities to identify investment opportunities in the construction and green mobility sectors. Likewise, training will be provided that will strengthen the knowledge of Bam officials and potential clients and stakeholders in Guatemala’s sustainability ecosystem.
This deal is expected to contribute to three of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).