IDB Invest, part of the Inter-American Development Bank (IDB), said Friday that it acquired the COP150 billion ($40.3 million) in four-year social bonds from Colombia’s Banco W, the first gender-focused notes issued by a microfinance lender in Latin America.
Banco W will use the money to fund roughly 25,000 loans to micro-businesses run by women, IDB Invest said in a press release.
“The financing will also contribute to the development of the capital markets and thematic bonds in Colombia and the region, consolidating Banco W as a recurring issuer that generates high social impact and contributes to the sustainable development of the country,” IDB Invest said.
IDB Invest and Banco W did not provide pricing details for the new notes.
BRC Investor Services assigned the partially guaranteed long-term notes an AA+ rating on October 23.
Banco W issued COP150 billion worth of 7.5% 2022 bonds in May 2019 in a deal that was 2.4 times oversubscribed.
In early October, the bank’s board authorized a merger with Financiera Pagos Internacionales Compañía de Financiamiento (FPISA CF), a Cúcuta-based financial institution specializing in international remittances.
Banco W is owned by Fundación WWB Colombia, a nonprofit institution whose mission is to give access to serve the low-income segment through loans to micro and small enterprises.