BBVA Colombia and IFC are to issue the financial sector’s first biodiversity bond.
BBVA will issue a total amount of $50 million and the resources will be used to finance projects focusing on reforestation, the regeneration of natural forests on degraded land, mangrove conservation or restoration, climate-smart agriculture, and wildlife habitat restoration, among others.
In addition to the investment, the transaction includes advisory services to set the eligibility criteria and indicators that aim to foster best practice in sustainable management of natural resources.
Mario Pardo, BBVA Colombia’s country manager, says: “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 we are presenting today, together with IFC. It represents not only a commitment to biodiversity and adaptation to climate change, but also an opportunity for social and economic development.”
Colombia is the world’s most biodiverse country per square kilometer. It is home to 14 percent of known plant species in the world, only surpassed by Brazil; and close to 4,500 bird species. This represents one third of all bird species in the world, making it the country with the greatest bird diversity on the planet.
In 2023, BBVA in Colombia channeled three billion pesos for environmental conservation initiatives, which represents growth of nearly 40 percent compared to the resources allocated to this purpose in 2022.
Alfonso García Mora, vice president of the IFC for Europe, Latin America and the Caribbean, comments: “Support for conservation projects helps to mitigate the adverse effects of climate change and safeguard biodiversity. This future bond issue has the potential to increase access to the financing available for initiatives that conserve, restore and protect biodiversity in Colombia.”
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