IFC Invests $50M in Davivienda’s Biodiversity Bond to Boost Colombia’s Conservation Efforts

Davivienda’s President, Javier Suárez, highlighted the bank's commitment to fostering sustainable agricultural practices through its clients.

The International Finance Corporation (IFC), part of the World Bank Group, has invested up to $50 million in a pioneering biodiversity-focused green bond issued by Banco Davivienda. The bond is designed to finance projects in Colombia that promote biodiversity conservation, climate-smart agriculture, and nature-based solutions to address environmental challenges. This investment marks IFC’s involvement in one of the first biodiversity bonds globally and is part of the broader COP16 focus on biodiversity, held from October 21 to November 1 in Cali, Colombia.

Davivienda, Colombia’s second-largest bank and a key player in Central America, aims to use the bond to fund sustainable projects, including reforestation, regenerative agriculture, and sustainable marine and freshwater systems. The bank has set ambitious goals, targeting 30% of its loan portfolio to be sustainable by 2030.

“This investment allows us to support transformative projects that contribute directly to biodiversity conservation in Colombia,” stated Alfonso García Mora, IFC’s Vice President for Europe, Latin America, and the Caribbean. “Our partnership with Davivienda will not only help conserve and restore biodiversity but will also set a market precedent, encouraging other financial players to engage in biodiversity financing across the region.”

Davivienda’s President, Javier Suárez, highlighted the bank's commitment to fostering sustainable agricultural practices through its clients. “This biodiversity bond allows us to fund eco-friendly projects that support native species protection, reforestation, and climate resilience with certified sustainability measures,” he stated.

Through advisory services, IFC will provide technical support to Davivienda, enhancing the bank’s capacity to manage and monitor biodiversity projects effectively and strengthening its green finance framework. The collaboration aligns with Colombia's green taxonomy initiatives, supported by the Financial Superintendency of Colombia, which promotes sustainability in finance and encourages the integration of biodiversity in economic growth.

IFC’s investment in the biodiversity bond signals growing interest from global investors in sustainable finance and biodiversity protection. By mobilizing additional resources, IFC and Davivienda aim to drive significant environmental outcomes in Colombia, and the project is expected to inspire similar biodiversity debt instruments across Latin America and the Caribbean.

The investment not only reflects the World Bank Group’s commitment to fostering a nature-based economy but also reinforces Colombia’s role in advancing global sustainability efforts.