Produbanco Sustainable Bond

in implementation

The Project consists of supporting Produbanco (“PB”) in the first issuance of a Sustainable Bond in the private sector of Ecuador. The total amount of the Bond is up to US$50 million divided in two series: (i) Serie A where IDB Invest will act as an investor with a 100% subscription for an amount of up to US$40 million; and (ii) Serie B, where IDB Invest or IDB, the latter as administrator of the Canadian Climate Fund (C2F), will act as an investor with a 100% subscription for an amount of up to US$10 million. The Serie B will be subject to economic incentives upon compliance of key performance indicators. The funds from the medium-term Bond will be used to finance small and medium-sized companies (SMEs) and PB's green portfolio. Additionally, IDB Invest will provide an advisory service to define the roadmap for PB’s NetZero Goal. This will allow it to work towards achieving the commitments assumed to the Net-Zero Banking Alliance initiative to align its loan and investment portfolio with net zero emissions by 2050. Additionally, Produbanco will be supported in the process of structuring the framework and certification of the sustainable bond.