47215 - Dav Co Inclusion

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Summary of Investment Information

Project Number

47215

Company Name

BANCO DAVIVIENDA S A

Date SPI Disclosed

Sep 20, 2022

Country

Colombia

Region

Latin America and the Caribbean

Projected Board Date

Oct 20, 2022

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Oct 27, 2022

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Oct 20, 2022
Signed : Oct 21, 2022
Invested : Oct 25, 2022

Sector

Commercial Banking - General

Project Description

The Project consists of a financing package of US$400 million to Banco Davivienda S.A. (Davivienda or the Bank) in the form of a senior loan, including mobilization from additional investors on a funded and unfunded basis.

Associated Advisory Engagement

In addition, IFC will provide advisory services to expand the Bank’s social inclusion strategy towards the LGBTI people.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	275.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Syndications	Loans to Woman-Owned SMEs
Syndications	Housing Loans to Individuals
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds
Straight Senior Loan	Loans to Woman-Owned SMEs
Straight Senior Loan	Housing Loans to Individuals
Syndications	Housing Loans to Individuals
Syndications	Loans to Woman-Owned SMEs

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant, expected Project-level outcome is improved access to finance for female-headed social households, WSMEs, LGBTI people and climate-smart projects. Beyond this Project-level outcome, IFC anticipates that the Project will further contribute to market creation through capacity building, competitive pressure, and demonstration and replication channels, as it will trigger market-wide impact on financial inclusion of LGBTI people.

IFC’s additionality through the Project is both financial and nonfinancial. Financial additionality will be provided in the form of (i) financing structure, as IFC will provide five-year financing to the Bank; and (ii) resource mobilization, as IFC will play a key in mobilizing financing from institutional investors and credit insurers. Nonfinancial additionality will be provided in the form of knowledge, innovation, and capacity building, as IFC will provide advisory services to help Davivienda expand its social inclusion strategy towards the LGBTI people.

E&S Category Rationale / Risks and Mitigation

The Project consists of an up to US$400 million loan to Davivienda Colombia ('the Bank') to expand its financing operations including housing and green buildings, women-owned SMEs, energy efficiency, renewable energy, and LGBTI people. The Project will not support investments involving activities described in IFC's exclusion list, companies operating in the coal sector, higher risk activities with significant E&S impacts and risks such as (a) involuntary resettlement, (b) adverse impacts on indigenous peoples, (c) significant impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) substantial occupational health and safety risks. High risk sub-projects such as hydropower and any power generation project exceeding 10 MW will not be eligible. The E&S risks and impacts of the Project derive from the Bank's capacity to assess and manage E&S risks associated to the project's potential pipeline in sectors such as construction, real estate, renewable energy generation, including solar, and are expected to be mostly of medium-low to medium E&S risk nature. The Project has been categorized as FI-2, in accordance with the IFC's Sustainability Framework.

Davivienda Colombia has an ESMS in place since 2011, that also covers its subsidiaries in Central America. The ESMS includes the screening of sub-projects against the Bank's exclusion list, applicable E&S laws and regulations (required licenses and permits), including relevant IFC Performance Standards, when applicable. The exclusion list, categorization process, and the procedures are in line with IFC requirements. The ESMS team is part of the credit risk vice-presidency. This team is responsible for overseeing compliance with the E&S policy and supporting ESMS implementation in Colombia and bank's branches located in Central America. A summary of ESMS will be disclosed by the bank. This transaction will not trigger the sub-project disclosure requirement. The client will submit an annual E&S report to IFC.

Contacts

For Inquiries About the Project, Contact

Banco Davivienda S.A.
David Pedraza
Head of Investor and Capital Management
+571 330-0000
ir@davivienda.com
Av. El Dorado #68C-61
www.davivienda.com

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Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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Online form: available at https://www.cao-ombudsman.org/
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Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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