BBVA Colombia and IFC issue world’s first biodiversity bond in the financial sector

BBVA and the International Finance Corporation (IFC), a member of the World Bank Group, issued a first tranche of US$15 million of the world’s first biodiversity bond, which will amount to US$70 million, with the objective of financing projects that address key drivers of biodiversity loss, focusing on reforestation, regeneration of natural forests on degraded lands, climate-smart and regenerative agriculture, wildlife habitat restoration, among others. BBVA in Colombia is the issuing bank and IFC acts as structurer and investor.

The operation included advice on establishing eligibility criteria and reporting indicators for activities that help protect, maintain or improve biodiversity and ecosystem services, as well as promote optimal and sustainable management of natural resources. In addition, IFC will contribute to the installation of technical capacities within BBVA and raise awareness among its clients about biodiversity financing opportunities in Colombia. During 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. Climate change not only affects biodiversity in animal and natural species, but also affects communities, leading to situations such as displacement due to flooding and crop losses due to droughts and fires.