BancoSol successfully placed approximately Bolivianos (Bs)
205.8 million in the first issuance of social bonds on gender,
called "Bonos Social Avanza Mujer BancoSol 1", having reached a
demand for 239.9 million of Bs, that is, 16.5% overdemand of the
offered value (bid to cover).
LA PAZ, Bolivia, June 20,
2024 /PRNewswire/ -- With IDB Invest's support,
BancoSol issued the first social gender bond in Bolivia for an amount of 205,800,000 bolivianos (equivalent to
US$30 million), with AAA rating by
Moody's and AESA Ratings. The issuance took place in the Bolivian
Stock Market, and IDB Invest provided a partial credit guarantee
covering up to 50% of the issue capital.
Following the placement of the bond, the proceeds will go toward
financing micro and small enterprises led by women (MSE Women) in
the Bolivia, with the goal of
financing at least 4,500 MSE Women.
This is BancoSol's first thematic bond issuance and the first
for a private commercial bank in Bolivia. It is expected to incentivize more
instruments with social and environmental impact in the capital
market, as well as have a catalytic effect to promote sustainable
finance in the country.
The project seeks to increase access to credit for MSEs in
Bolivia, strengthening BancoSol's
"Avanza Mujer" strategy for this segment, a program that has a
differentiated value proposition, which promotes the inclusion and
growth of businesses led by women. Additionally, the project seeks
to encourage the growth of BancoSol's portfolio with underserved
clients in the Amazon region, promoting social and rural
development.
The project is supported by the Women Entrepreneurs Financing
Initiative (We-Fi). IDB Invest will provide BancoSol with advisory
services and a monetary bonus of up to $200,000 subject to fulfilling objectives related
to the growth of the SME Women portfolio, including rural
areas and the Amazon region. It is the first time that We-Fi
resources have been channeled into an IDB Invest blended financing
project in Bolivia.
Likewise, IDB Invest supported BancoSol in the design of the
methodological framework for the use of funds, which contains the
selection, monitoring, and evaluation criteria for projects aligned
with the Social Bond Principles of the International Capital
Markets Association (ICMA). BancoSol obtained an independent
verification of the methodological framework, known as a
second-party opinion, issued by Pacific Corporate
Sustainability.
"IDB Invest's participation in the issuance of the first gender
social bond in Bolivia confirms
our commitment to financial inclusion and sustainable finance in
the country," said Marisela
Alvarenga, Chief Investment Officer (a.i.) of IDB Invest.
"BancoSol, the largest microfinance bank in Bolivia, is one of our strategic partners to
achieve an impact at scale and reach in underserved populations,
thus generating greater financial inclusion."
"We are proud that BancoSol is the first bank in Bolivia to be supported by IDB Invest for the
issuance of gender-themed bonds in the country, which confirms the
recognition of our work with financial inclusion and the economic
empowerment of women. The resources obtained will allow us to
expand access to financing for businesses led by Bolivian women,
contributing to closing economic gaps and sustainable development,"
said Verónica Gavilanes, Deputy General Manager of BancoSol.
This deal marks a step forward in sustainable investments and in
the Bolivian Stock Market, contributing to the following United
Nations Sustainable Development Goals (SDGs): SDG 1 (No Poverty),
SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth),
SDG 9 (Industry, Innovation and Infrastructure) and SDG 10 (Reduced
Inequalities).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank
Group, is a multilateral development bank committed to promoting
the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB
Invest finances sustainable companies and projects to achieve
financial results and maximize economic, social, and environmental
development in the region. With a portfolio of $21 billion in assets under management and 394
clients in 25 countries, IDB Invest provides innovative financial
solutions and advisory services that meet the needs of its clients
in a variety of industries.
About BancoSol
In February 1992, BancoSol became
the first commercial and regulated microfinance bank in the world,
with the mission of providing opportunities for a better future to
businessmen and women in the microbusiness sector, contributing to
the reduction of poverty and contributing to sustainable
development. Currently, it serves more than 1.3 million
microbusiness entrepreneurs throughout the country. It also
supports 373,673 entrepreneurs with loans for an amount that
amounts to US$2.4 billion, of which
168,263 are women entrepreneurs who boosted their businesses
through loans that reach $1.06
billion, which represents 43.4% of the bank's total
portfolio. BancoSol has 1,455 service points in the nine
departments of Bolivia.
About We-Fi
The Women Entrepreneurs Financing
Initiative (We-Fi) aims to unlock financing for women-owned or run
businesses (Women MSEs) in developing countries. We-Fi partners
include 14 donor governments, six multilateral development banks as
implementing partners, and many other public and private sector
stakeholders from around the world.
Contact: Thessa Mooij,
+1.917.631.2518, tmooij@accion.org
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SOURCE BancoSol