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Press Release
January 11, 2023
two women in store

IDB Invest and FinDev Canada support the strengthening of the regulatory capital of Banco de Occidente in Colombia

Press Releases

IDB Invest and FinDev Canada are joining efforts to strengthen the regulatory capital, Tier II, of Banco de Occidente S.A. through two parallel subordinated loans for a total of $100 million.

Summary of Anticipated Development Impacts

Women's Economic Empowerment 

  • Increasing access to financing for women entrepreneurs: By on‑lending 30% of FinDev Canada’s funds to WSMEs, Banco de Occidente will contribute to promoting increased participation of women entrepreneurs in the economy. The additional support WSMEs are expected to receive through this financing is critical, as women entrepreneurs have been disproportionately affected by COVID‑19.2 Furthermore, only 9% of Colombia’s SMEs are WSMEs, compared to 27% of WSMEs in Latin America and the Caribbean
  • Promoting the representation of women employees: Women represent 60% of all employees at Banco de Occidente. The Bank is committed to maintaining women’s high representation in its workforce and to provide quality employment. The transaction qualifies for the 2X Challenge under employment and indirect criteria.

Market Development

In Colombia, SMEs are an important contributor to the national economy accounting for 28% of GDP

Climate Action

  • Supporting SME clients on climate action: Banco de Occidente provides a suite of knowledge resources to its SME clients and intends to further equip its customers with additional content and materials on relevant climate topics. The Bank also plans to explore ways to better serve SMEs operating in sustainability sectors.
  • Advancing internal climate action practices: As part of Colombia’s Carbon Neutrality Program, Banco de Occidente is actively working towards assessing, managing, and reporting its annual GHG emissions in accordance with the TCFD requirements.