BBVA and the International Finance Corporation (IFC) issued a US$15 million first tranche of the world’s first biodiversity bond that will amount to US$70 million, they said on Friday.
The entities said that the objective of this bond is to finance projects that address the key drivers of biodiversity loss, particularly focused on reforestation, regeneration of natural forests on degraded lands, climate-smart and regenerative agriculture, restoration of wildlife habitats, among others.
“BBVA is proud to lead this initiative with IFC. It not only represents a commitment to biodiversity and adaptation to climate change, but also an opportunity to generate economic and social development,” said Mario Pardo, executive president of BBVA in Colombia.
Alfonso García Mora, vice president for Europe, Latin America and the Caribbean of IFC, added “Support for conservation projects contributes to mitigating the adverse effects of climate change and safeguarding biodiversity. We are delighted to support BBVA in this initiative, the first of its kind on a global scale and reaffirm once again our commitment to sustainable development and environmental protection in Colombia.”
BBVA in Colombia is the issuing bank and IFC acts as structurer and investor, the entities said. This operation includes advice to establish eligibility criteria and reporting indicators for activities that help protect, maintain or improve biodiversity and ecosystem services, as well as promote optimal sustainable management of natural resources.
IFC said it will additionally buiild technical capabilities within BBVA and raise awareness among its clients about financing opportunities for biodiversity in Colombia.
In 2023, BBVA in Colombia financed more than 214.8 billion Colombian pesos in areas aligned with biodiversity, such as land use, terrestrial habitat, ecotourism projects, smart agriculture and conservation of marine habitats, mammals and birds.
