75.28 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.28
Equity

* These investment figures are indicative

Infrastructure development: The Project will improve firm’s access to high-quality and modern urban infrastructure through new potential industrial, office, healthcare, and retail property developments. Furthermore, the modern industrial warehouses established through the Project can contribute to efficiency gains and reduced operational costs for local businesses and supply chains. Class A developments can be significantly more efficient with lower operating costs than existing properties in the market. Environmental effects: All new developments will be certified as green buildings. In addition, Visum is expected to embark in a decarbonization pathway under the IFC GRIP (“Green Pathways for Real Estate Institutional Portfolios”) program, through which some existing buildings will be upgraded to attain energy efficiencies and reduce their carbon footprint and new acquisitions/developments will also have lower carbon footprint. Improving energy-efficiency in the commercial property sector is critical for coping with energy supply constraints while contributing to GHG emission reductions. Green Building (“GB”) Standards: The penetration of GB standards in Colombia remains low. The share of green buildings for new developments is currently at 4%, with an objective to reach 100 percent by 2030. Since 2011, the uptake for GB in Colombia remains mandatory, however, wide adoption of GB has proved a challenge due to (i) limited uptake of GB financing business by banks, (ii) very limited use of GB certification to two regions, Cundinamarca and Antioquia, (iii) lack of technical capacity and human capital in the GB area and (iv) lack of awareness by the government, FIs and leading developers.

Knowledge, Innovation, and Capacity Building: Visum will benefit from the implementation of IFC’s E&S compliance framework. In addition, IFC is expected to support Visum in defining and implementing its portfolio-level decarbonization strategy, under the recently launched GRIP Upstream program, which will guide on a systemic fashion, both the development of GB and the implementation of cost-efficient, energy-saving upgrades on existing properties, which in some cases could include obtaining certifications. Financing Structure: IFC will support Visum’s prospective access to debt financing by (i) expanding its financing at the corporate level, thereby reducing small scale debt at the asset level; and (ii) expanding the existing base of lenders (all local banks). Furthermore, IFC’s intended support under GRIP is expected to open the doors to green finance mechanisms such as ESG-linked loans and green bonds for Visum, as well as attract investors and tenants that have committed to climate goals.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the potential adverse E&S risks and/or impacts, which are generally site-specific, are largely reversible and can readily be addressed through mitigation measures. Based on the available project information, key project-related E&S issues and risks include the company’s capacity and systems to review and manage the E&S performance associated with the operations of their assets, adequate procedures for site selection and acquisitions for pipeline projects, stakeholder engagement and community grievance mechanism, and contractor E&S management during construction. 

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.