IDB Invest’s Originate-to-Share Business Model
BOGOTÁ, Colombia — IDB Invest provided up to $70 million in financing to Banco de Bogotá S.A. to expand access to credit for micro, small, and medium-sized enterprises (MSMEs) in Colombia.
The financing will help expand access to credit for businesses seeking to grow, modernise their operations, strengthen productivity, or develop new projects that enhance their competitiveness.
The transaction combines IDB Invest’s own resources with mobilised financing to increase the scale of available funding and channel additional investment toward private sector growth in Colombia. The financing includes an initial committed tranche of up to $50 million and an uncommitted tranche of up to $20 million. In addition, approximately $80 million is expected to be mobilised from other investors.
Beyond expanding access to credit, the transaction includes a technical assistance component through which IDB Invest will support Banco de Bogotá in developing an ecosystem credit program in the Colombian Amazon. The initiative will seek to identify opportunities to generate positive impacts for communities and territories through financial instruments associated with ecosystem conservation and protection.
Meanwhile, IDB Invest and Proparco strengthens partnership to mobilise private investment in Latin America and the Caribbean.
IDB Invest and Proparco have strengthened their longstanding partnership through an Enhanced Cooperation Agreement designed to facilitate co-financing opportunities, mobilise additional private capital, and streamline transaction execution.
The enhanced cooperation establishes a framework that reduces duplication and improves coordination in jointly financed transactions, helping both institutions deploy capital more efficiently and expand support for private sector projects in Latin America and the Caribbean.
The agreement also supports IDB Invest’s Originate-to-Share business model, enabling greater participation by development finance institutions in transactions originated and structured by IDB Invest. By strengthening collaboration and leveraging institutional efficiencies, the partnership will help mobilise additional resources, extend IDB Invest’s financing capacity and expand private sector investment across the region.
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