Holland & Knight Advises Inter-American Development Bank in its First Subscription of Sustainable Development-Linked Bonds
The bonds are the first-of-their-kind issued by a bank in Latin America
BOGOTÁ (November 10, 2022) – Holland & Knight's Colombia office advised the Inter-American Development Bank (IDB), IDB Invest and the Latin American Green Bond Fund as investors in the first sustainable development bond issuance by a bank in Latin America. The issuance occurred on October 25.
The issuance, carried out by Bancolombia for an amount of COP $640,000 million, is registered under the Financial Superintendence of Colombia. These resources will be used to finance projects that advance Bancolombia's sustainable finance and purpose-driven business strategy, following the principles established by the International Capital Market Association (ICMA) for Sustainability-Linked Bonds. On the occasion of the issuance, social and environmental compliance goals have been set for the development of the issuer's business.
As part of this transaction, Holland & Knight's advice consisted of the review of all the documentation associated with the transaction, as well as the negotiation of the terms of the investment and the review of the conceptual framework that defines how funds can be used in order to align with applicable regulations.
"We are very proud to have participated in this operation, which undoubtedly marks a very important milestone for the Colombian financial sector and for the IDB," said Holland & Knight Partner Camilo Gantiva Hidalgo. "This transaction clearly demonstrates the capabilities of our local team in sustainable financing and capital markets, a trend that, due to the development of ESG criteria, will continue to grow."
The Holland & Knight team advising IDB was led by Partner Camilo Gantiva Hidalgo. He was supported by Partner Enrique Gómez-Pinzón and Associates Juan Felipe Fontecha, Simon Escobar and María Elvira Borrero.