IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group, recently subscribed to a four-year bond of COP 150 billion (USD 39.6 million) to be issued by Banco W, a Colombian credit institution. The funds are slated to reach 25,000 female-led microenterprises and support the “development of the capital markets and thematic bonds in Colombia.” The bond is registered with the Colombian Stock Exchange, and IDB Invest describes it as “social” based on its support for the following UN Sustainable Development Goals (SDGs): Decent Work and Economic Growth; Gender Equality; Industry, Innovation and Infrastructure; and No Poverty.
In addition to enterprise loans, Banco W offers consumer loans and microinsurance. Founded in 2011, the microlender has 146 offices, 150 banking correspondents and 17,000 collection points in 30 departments in Colombia. As of June 2020, it has a portfolio of USD 338 million outstanding to 218,000 clients.
IDB Invest is the trade name of the Inter-American Investment Corporation. The organization focuses on promoting economic development in Latin America and the Caribbean through projects in agriculture, financial inclusion, sustainable energy and transportation. IDB Invest is owned by its 47 member countries. As of June 2020, it had USD 13.1 billion in assets under management, deployed via 385 clients in 25 countries.
The other two members of the IDB Group are IDB and IDB Lab, which is the trade name of the Multilateral Investment Fund. IDB Lab is an “innovation lab” that tests models for facilitating “inclusive growth.” IDB issues grants, loans and technical support intended to promote economic development – including via improved health, education and infrastructure – in its member countries in Latin America and the Caribbean. As of December 2019, IDB had total assets of USD 136 billion, having issued USD 13 billion in loans and guarantees during the year.
By Romil Pandey, Research Associate
Sources and Additional Resources
IDB Invest press release
https://idbinvest.org/en/news-media/idb-invest-and-banco-w-support-microenterprises-led-women-colombia-cop150-billion-bond
Banco W homepage
https://www.bancow.com.co
IDB Invest homepage
https://idbinvest.org
UN SDGs homepage
https://www.un.org/sustainabledevelopment/
IDB Annual Report 2019
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-1177496895-273
IDB Invest Financial Statement June 2020
https://idbinvest.org/en/investors
Past MicroCapital article on IDB
https://www.microcapital.org/microcapital-brief-idb-invests-60m-in-colombia-for-msmes-to-boost-production-capacity-energy-efficiency/
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