MARKET DEVELOPMENT

• Increasing access to finance for Colombian SMEs: In Colombia, SMEs are an important contributor to the national economy accounting for 28% of GDP.¹Despite their major role in the economy, only 40% of SMEs access commercial credit.¹With a leading track record providing financial and non‑financial services to growing SMEs, Banco de Occidente will on‑lend the proceeds from this transaction towards Colombian entrepreneurs. It is anticipated that up to 3,000 SMEs can benefit from financing through this transaction. Unlocking capital for private businesses is key for the economic reactivation of Colombia following the pandemic.

GENDER EQUALITY

• 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.³
• 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.

¹ OECD. Financing SMEs and Entrepreneurs 2020: Colombia. 2020. 
² UN Women. Efectos Diferenciados Por Género de COVID‑19 en el Desarrollo Sostenible. 2021.
³ IFC. MSME Finance Gap. 2018

CLIMATE AND NATURE 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.