48100 - Finandina SL

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

48100

Company Name

BANCO FINANDINA SA

Date SPI Disclosed

Nov 8, 2023

Country

Colombia

Region

Latin America and the Caribbean

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jul 17, 2025

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Aug 29, 2024
Signed : Jun 26, 2025
Invested : Jul 15, 2025

Sector

Commercial Banking - Consumer Finance

Project Description

The proposed investment consists of a sustainability senior loan to Banco Finandina S.A. (“Finandina”, or the “Bank”), to support Finandina’s lending operations to finance Hybrid and Electric Vehicles (HEVs) for individuals, micro, small and medium size enterprises (MSMEs) and women-owned small and medium size enterprises (WSMEs) in Colombia.

Associated Advisory Engagement

Potential advisory service engagements include IFC Advisory Services to expand the Bank’s financial inclusion strategy for WSMEs.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
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
Straight Senior Loan	Loans to MSME (mix of Micro and SME)
Straight Senior Loan	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 increased access to climate finance products, through financing HEVs, for individuals, MSMEs and WSMEs, including resulting reduction of GHG emissions in Colombia. Beyond the Project, IFC anticipates that the investment will promote sustainability both by scaling up the emerging green financing in the transportation sector and carrying out awareness-raising activities on HEVs for individuals, MSMEs and WSMEs through a series of investments.

IFC’s additionality through the Project will be both financial and non-financial. Financial additionality will be provided in the form of financing structure as IFC will provide longer-term financing that is not easily available in the market to increase the average maturity of the Bank’s funding and reduce its debt maturity gap, improving its financing structure. In addition, by offering a SLL, IFC will increase the affordability of Finandina’s funding, in case it reaches the predefined sustainability performance targets (SPTs). Nonfinancial additionality will be provided in the forms of: (i) knowledge, innovation, and capacity building, as IFC will provide the Bank with knowledge on climate finance, in addition to a potential AS engagement for its gender portfolio; and (ii) standard-setting, as IFC is expected to help Finandina enhance its ESMS.

E&S Category Rationale / Risks and Mitigation

The proposed investment consists of a 3-year sustainability loan of US$75 million for Banco Finandina S.A. (“Finandina” or “the Bank”) in Colombia. The loan will be used to support the growth of the Bank’s Hybrid and Electric Vehicles (HEV), as well as its Micro, Small and Medium size Enterprises (MSMEs) and Women Small and Medium size Enterprises (WSMEs) portfolios. The Project will not support investments involving activities described in IFC’s exclusion list, companies operating in coal-related activities or higher risk activities. The E&S risks and impacts of the Project derive from the Bank’s capacity to assess and manage the risks associated with the proposed pipeline, which will focus on the individual and MSME portfolios. The MSMEs component will be in sectors such as trade, services and transport, which are expected to have low to medium E&S risks and are mostly Occupational Health and Safety (OHS) related. It has therefore, according to the IFC’s Sustainability Policy, been classified as FI-2. IFC’s applicable E&S requirements for this Project will be the Exclusion List, and national relevant E&S laws and regulations.

IFC will periodically disclose the names, locations and sectors for Category A sub-projects that have been supported by IFC investments through financial intermediaries, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of July 1, 2020.

Sub-projects will comprise loans to finance: (i) Hybrid and Electric Vehicles (HEVs) for individuals, micro, small and medium size enterprises (MSMEs) and (ii) women-owned small and medium size enterprises. (WSMEs).

Banco Finandina has a sustainability strategy that follows relevant international disclosure practices such as the Global Report Initiative (GRI), Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) and is an active member of the Colombian Association of Sustainable Banks (Protocolo Verde). Regarding the management of the environmental and social risks, the Bank has an exclusion list which is consistent with the IFC’s, and it is only applied to selected transactions based on credit risk analysis. The ESMS Officer is currently the Head of the Sustainability Strategy in the Bank. As part of the investment, the Client will be required to: 1.) Expand the applicability of the exclusion list to all the sub-loans involved in this loan and design and implement procedures aimed at screening the proposed pipeline against the IFC exclusion list and applicable national law, as well as an E&S categorization process aiming to screen out higher risk activities, 2.) Nominate an ESMS Officer; and 3.) Submit annual monitoring reports based on the template provided by IFC.

S.no	Title	Anticipated Completion Date
1	Establish SEMS	08/09/2024 20:32:21
5	Staff Training	08/09/2024 20:32:21

Contacts

For Inquiries About the Project, Contact

Banco Finandina S.A.
Hernan Navas
Director
57 12191919
Hernan.navas@bancofinandina.com
Carrera 7 Km 17 Carretera Central del Norte Vereda Fusca, Chia , DC, Bogota.

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

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

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

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.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Financial Intermediary Sub-Project Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer