Bancosol, the largest microfinance bank in Bolivia and one of IFU’s investees, has issued the first gender bond in the country. The bond called “Bonos Sociales Avanza Mujer BancoSol 1″ was sold in the Bolivian Stock Market ending at a total sales amount of USD 30 million.
The proceeds will go towards financing micro and small enterprises led by women (MSE Women) in Bolivia, with the goal of financing at least 4,500 MSE Women.
The project seeks to increase access to credit for MSEs in Bolivia, strengthening BancoSol’s “Avanza Mujer” strategy, a programme that has a differentiated value proposition, which promotes the inclusion and growth of businesses led by women. Additionally, the project seeks to encourage the growth of BancoSol’s portfolio with underserved clients in the Amazon region, promoting social and rural development.
The deal marks a step forward in sustainable investments and in the Bolivian Stock Market, contributing to the following United Nations Sustainable Development Goals (SDGs): SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 10 (Reduced Inequalities).
“The resources obtained will allow us to expand access to financing for businesses led by Bolivian women, contributing to closing economic gaps and sustainable development,” said Verónica Gavilanes, Deputy General Manager of BancoSol.
The Danish SDG Investment Fund is supporting Bancosol
The Danish SDG Investment Fund, managed by IFU and backed by large Danish pension funds and private investors, is an investor in Bancosol. The bank’s mission is in line with IFU’s impact strategy to support financial institutions that provide microfinance and risk capital to MSEs, which are crucial for creating jobs and improving livelihood in developing countries. As Bancosol, IFU also has a strategic focus on empowering women in business,
“A big congratulations to Bancosol for a successful launch of the first gender bond in Bolivia. This is a perfect match with our impact strategy to provide financing for small businesses and empower women,” said Morten Elkjær, SVP, Head of Financial Services at IFU.
Providing finance that works
Bancosol has provided microfinance in Bolivia for more than 30 years and has significantly impacted million of lives in the country. Two of those are Soledad Garcia and Felipa Mamani who are portraited in a book that pay tribute to the entrepreneurial spirit of the many Bolivian women who have made their own paths challenging barriers, breaking paradigms and building bridges towards a more inclusive and equitable future.
Read more about Soledad Garcia and Felipa Mamani
About BancoSol
In February 1992, BancoSol became the first commercial and regulated microfinance bank in the world, with the mission of providing opportunities for a better future to businessmen and women in the microbusiness sector, contributing to the reduction of poverty and contributing to sustainable development. Currently, it serves 373,673 entrepreneurs with loans amounting to USD 2.4 billion, of which 168,263 are women entrepreneurs, who boosted their businesses through loans that reach USD 1.06 billion, which represents 43.4% of the bank’s total portfolio deposit clients throughout the country. It also provides savings and payment services to more than 1.3 million clients.