Colombia issues $66.7 million green bond

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The Inter-American Development Bank (IDB) announced that the Banco de Comercio Exterior de Colombia (Bancoldex), which is a financial entity of the Colombian government which promotes productivity and competitiveness, has issued the he country's first greenbond available through the Colombian Stock Exchange for 200 billion COP (around $66.7 million).

According to the BID, net proceeds from the bond issuance will be used for projects that mitigate the impact of climate change and improve the environmental performance of Colombian companies, without specifying if solar projects will be also included.

The BID said that this first green bond has raised a strong interest in investors, and that auction for the bonds was 2-1/2 times oversubscribed, with a demand of 510 billion COP. The bonds, which have a duration of 5 years, were structured with the support of the Secretariat of State for Economic Affairs of Switzerland (SECO)and supported by the Climate Bond Initiative.

“Green bonds are a fundamental product so that Bancóldex can advance in the financing of projects related to sustainable construction, cleaner production, energy efficiency and renewable energy, among others, necessary to combat climate change,” the president of Bancóldex Luis Fernando Castro said.

Colombia is currently turning to solar and renewables in order to diversify its electricity mix, which is largely dependent on hydropower. In March, the government published the Decreto 348 del 1 de marzo de 2017, a new legislation to support the installation of small and medium-sized renewable energy and solar power generators across the country.

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