Guayaquil Social Bond

in implementation

The Project consists of supporting Banco Guayaquil (“BG”), as it issues its first social bond for Ecuador’s private sector. The total amount of the bond is up to US$30 million, and IDB Invest will take part as an investor, with a subscription of 100%. The proceeds from this medium-term social bond will be used to finance the Micro, Small, and Medium-sized enterprises (“MSMEs”) that are part of the microcredit portfolio under the “Banco del Barrio” (neighborhood bank) program and in the bank’s Small and Medium-sized Enterprises (“SME”) portfolio. Banco del Barrio is the nonbank correspondent financing system with the largest geographical reach in the country. The Project will mainly be focused on MSMEs located in the Ecuadorian cities most impacted by Covid-19. Technical assistance will also be provided for designing the conceptual framework of the bond issue, and a second party opinion will be included, pursuant to the Sustainable Development Goals (“SDGs”).