- Region: Latin America and the Caribbean
- Untied Loans
March 18, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on March 16 (Panama Time), upon the Inter-America Development Bank (IDB)'s annual meeting held in Panama, an untied loan agreement for offering a credit line amounting up to 100 million U.S. dollars (of which JBIC's portion is 60 million U.S. dollars) with Banco de Bogotá S.A. (Banco de Bogota) incorporated in Colombia. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC, lead arranger), with JBIC providing a partial guarantee for the cofinanced portion.
- This credit line is the first loan extended to Colombia under GREEN operations*1 and intended to provide funding through Banco de Bogota for environment businesses related to renewable energy such as small scale run-of-river type hydraulic power and biomass power generation.
- As the government of Colombia ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, it is actively undertaking environmental measures targeting the reduction of GHG emission, including a policy of increasing the ratio of power generation by renewable energy to 77% of total power generated by the year 2020. This credit line is expected to contribute to promoting introduction of renewable energy and reduction of GHG emission in Colombia.
- Banco de Bogota is the second largest commercial bank in terms of total assets and actively supporting environment-related business in Colombia. JBIC and Banco de Bogota have built up close cooperative ties since the 1980s through loans financing Japanese exports of machinery and equipment to Colombia, and this credit line aiming at the environment business sector is expected to further deepen the cooperative relationship between the two institutions.
- JBIC will continue to support global environmental preservation efforts, in cooperation with such overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
- *1 See Information on April 27, 2010.