Award for innovation - use of proceeds (social bond): Banco W/IDB Invest

This is the first social bond with a gender perspective issued by a commercial microfinance institution in Colombia.

IDB Invest, a member of the IDB Group, structured and subscribed the four-year bond of COP$150 billion ($39.6 million) issued by Banco W, a Colombian credit institution.

The resources from the bond placement will be used to finance the growth of Banco W's portfolio of micro-enterprises led by women and is expected to increase their access to credit and strengthen their businesses. The bond aims to benefit approximately 25,000 women microentrepreneurs throughout the country.

One Environmental Finance Bond Awards judge praised the issuance for addressing "several key social issues – women empowerment, vertical growth, business development". Another said: "the targeted gender focus is unique and provides an opportunity for meaningful impact" and has the added benefit or "furthering thematic bond issuance in the region".

As part of the bond issuance process, IDB Invest advised Banco W on the design of the methodological framework for the use of funds, which contains the criteria for selection, monitoring and evaluation of projects, and the alignment with the Social Bond Principles of the International Capital Market Association (ICMA). A second-party opinion was obtained from Vigeo Eiris (V.E), an affiliate of Moody's.

Deal Highlights

Issuer:  Banco W
Size: COP$150 billion ($39.6 million)
Maturity: November 2024
Use of Proceeds:  Employment generation including through the potential effect of SME financing and microfinance
External Reviewer:  V.E
Other highlights/notable features: First social bond with a gender perspective issued by a commercial microfinance institution in Colombia