IFC Supports Social Bonds for Sustainable Development in Colombia

The International Finance Corporation (IFC), a member of the World Bank Group, announced the signing of an agreement for the issuance of social bonds worth COP$540 billion (approximately US$130 million equivalent) by Promigas, Surtigas, and Gases de Occidente as co-issuers. This is the first issuance of social bonds by a private company in the real sector in Colombia's capital markets.

The funds will be allocated to financing Brilla, a program that provides financing access to thousands of Colombian households. 94% of these households belong to strata 1, 2, and 3, vulnerable populations without access to formal credit. The program has accumulated COP$8.4 trillion in loans granted since 2007.

"With the issuance of social bonds, we reaffirm our commitment to financial inclusion and sustainable development, offering the most vulnerable communities the possibility of financing products and services through a simple and accessible mechanism. We thank the IFC for the trust placed in our credit program for clients with little or no access to traditional banking financing," said Juan Manuel Rojas, president of Promigas.

Brilla currently has 817,479 active clients, with an average loan of COP$2.5 million and low levels of overdue portfolio, reflecting the clients' compliance with their obligations to access new quotas. This program finances products that optimize energy use, contributing to emission reductions, and is a driver of progress and economic growth in the territories, contributing to the reduction of multidimensional energy poverty.

Cheryl Edleson Hanway, Director of Infrastructure, Energy, and Mining for Europe, Latin America, and the Caribbean at IFC, stated, "We are proud to support Promigas in its first issuance of social bonds, which will generate a significant impact in promoting financial inclusion and sustainable development in Colombia. This collaboration demonstrates the power of innovative financing mechanisms to address the needs of vulnerable populations and drive positive outcomes. Together, we can create a more inclusive and resilient future."