FinDev Canada, IDB Invest, and the National Bank of Costa Rica made history with Costa Rica’s first social bond, achieving its ambitious goals in uplifting women entrepreneurs
Banco Nacional De Costa Rica (BNCR)
BNCR is Costa Rica’s largest commercial bank and a leader in inclusive finance. It partnered with FinDev Canada and IDB Invest to launch the country’s first social bond, focused on supporting MSMEs and women-led businesses. This initiative expanded access to finance in Costa Rica and strengthened BNCR’s commitment to gender equality.
Latin America and the Caribbean
Sustainable Infrastructure: Support to low-carbon, climate-resilient infrastructure. Sub-sectors include energy, including renewables and energy efficiency; transportation; water and sanitation; and digital infrastructure.
Climate and Nature Action: Building low-carbon and climate-resilient and nature-positive economies, including through sustainable infrastructure
Gender Equality: Mainstreaming gender equality in investment activities to support women’s economic empowerment, gender equality, and improve business performance
Market Development: Developing markets to support quality job creation, capital markets, and access to finance as well as products and services that raise living standards and add value to the economy
2X Challenge: The 2X Challenge is an initiative that seeks to support businesses that provide women in emerging economies with access to leadership opportunities, quality employment, and products and services that enhance their economic participation and inclusion
The Challenge
Women-led businesses face major barriers to accessing finance in Costa Rica. MSMEs play a large role in Costa Rica’s economy, representing approximately 98 percent of the country’s businesses and accounting for almost a third of national employment[1]. That said, these businesses still struggle with accessing finance.[2] This is especially true for women-led businesses, which face a credit gap of $1.4 to $1.7 trillion globally[3] or about $98 billion in Latin America.[4] In fact, only five percent of financing in Latin America and the Caribbean goes to companies led by women[5] and 70 percent of women-led SMEs that apply for a bank loan fail to secure one.[6] These gender barriers extend into corporate boardrooms as well, where only 34 percent of management positions in Latin America and the Caribbean are held by women.[7]
The Opportunity
FinDev Canada partnered with IDB Invest and Banco Nacional de Costa Rica (BNCR) to issue the first-ever social bond in Costa Rica. A social bond is a financing instrument for transactions that deliver positive social outcomes, in this case supporting micro, small, and medium-sized enterprises (MSMEs). In February 2022, FinDev Canada contributed US$30 million, and IDB Invest, the private sector arm of the Inter-American Development Bank, contributed US$45 million to the US$75 million social bond issued by BNCR. At least 40 percent of the bond was designated for women-owned or –led MSMEs (WMSMEs), providing thousands of them with increased access to finance. This made the bond eligible for the 2X Challenge, a global initiative supporting gender equality and women’s economic empowerment that has mobilized US$34 billion since 2018.
BNCR’s size, reach, and commitment to gender equality uniquely position it to support women-led businesses in Costa Rica. It is the country’s largest commercial bank, with over 150 branches nationwide and 32,000 MSME clients as of December 2024—over half of the country’s registered MSMEs. BNCR’s commitment to gender equality was evident before the social bond. Its specialized gender division, BN Mujer, has been delivering programs supporting Costa Rican women and entrepreneurs for over 15 years, with WMSMEs representing around 30 percent of the Bank’s MSME portfolio before the social bond. The client’s pre-existing commitment proved to be an important factor in the transaction’s eventual success.
“BNCR's proactive stance on gender equality was a cornerstone of this transaction's success, as it allowed us to join forces with IDB Invest on structuring the terms of a social bond.”[3]
After the social bond and technical assistance, BNCR demonstrated its increased capability to provide these valuable financial services to clients. As one client explained, “BNCR provided me with support and guidance at every stage. They never left me on my own, and they offered the best conditions.”[4]
Impact so far
BNCR’s social bond achieved its targets and delivered valuable development impacts. BNCR fully disbursed the bond’s US$75 million to 4,400 MSMEs through over 5,600 loans, improving access to capital for underserved businesses in Costa Rica. Forty-one percent of the funds went to WMSMEs, surpassing the bond's target of 40 percent. BNCR also exceeded the 2X Challenge’s gender representation benchmarks from 2022 in leadership and employment. Women held 43 percent of Board of Directors positions and 50 percent of senior management roles, surpassing the 2X Challenge's 30 percent threshold. Among employees, women’s representation rose to 53 percent, well above the 2X benchmark of 40 percent.
FinDev Canada also provided technical assistance to BNCR to develop and institutionalize a market strategy for women-led businesses. The technical assistance included implementing mentorship programs and training branch managers and sales personnel on inclusion and gender equality. These efforts were meant to foster a culture of inclusion within BNCR and enhance its capacity to serve women customers with expanded financial product offerings, thereby reducing the financing gap for women-led businesses in Costa Rica. As one BNCR official said, “This new type of social bond supports inclusive banking and empowers women businesses. Both are essential for creating jobs and well-being in the country.”[5][6]
FinDev Canada’s technical assistance catalyzed transformative change within BNCR. It led to a comprehensive WSME strategy and work plan, trained 605 staff and managers across all BNCR branches in inclusion and gender equality, and delivered a leadership development and mentorship program for more than 30 employees, mostly women, from various departments and seniority levels. As one participant commented about the program, “What I valued most was my personal growth, the daily development of my leadership, and how it impacts the people around me.”[7][8] Moreover, the technical assistance, complemented by extensive market research, helped prioritize gender equality within the Bank and sharpen its focus on serving women customers, with the full support of its leadership team. As one Bank official said, “We believe equal opportunities are a pathway to becoming a more developed and inclusive country.”[9] BNCR credits the technical assistance for driving these changes. As a FinDev Canada Program Officer said, “The women's market strategy sets the bank up to grow this customer segment further in the years to come.”[10]
Looking ahead
BNCR, IDB Invest, and FinDev Canada are building on the social bond's success by issuing Costa Rica's first Blue Bond. FinDev Canada contributed $20 million to the $50 million bond, which funds sustainable ocean-based businesses in fisheries, aquaculture, waste management, tourism, and other sectors. Over a third of the proceeds will qualify as climate finance and will help fill the US$150 billion global funding gap for ocean conservation. This initiative was made possible by the social bond’s success and reflects the leadership and shared vision of BNCR, IDB Invest, and FinDev Canada for a sustainable and prosperous Costa Rica.
1 FinDev Canada. 2024. Banco Nacional de Costa Rica (BNCR): Increasing Access to Financing for Women-Led Businesses. Accessed December 27, 2024.
2 FinDev Canada. "Banco Nacional de Costa Rica (BNCR)." Last modified July 15, 2024. Accessed December 29, 2024.
3 Vice-President and Chief Impact Officer Stéphanie Émond: “BNCR's proactive stance on gender equality was a cornerstone of this transaction's success, as it allowed us to join forces with IDB Invest on structuring the terms of a social bond. Their bank’s history of servicing and championing women-led businesses was essential in achieving the social bond objectives and generating impactful outcomes through the financing instrument and technical assistance.”
4 Norman Murillo “Uno siempre compara diferentes opciones en el mercado, pero lo que para mí marcó la diferencia fue el acompañamiento y la asesoría que me dieron en el BN en cada etapa. Nunca me dejaron solo y en ese momento era el banco que tenía las mejores condiciones.” Refer to: https://www.elfinancierocr.com/brandvoice/ecosistema/bn-109-anos-de-impulsar-el-desarrollo-economico/3EH5PGQVK5F47E35CVWDW6BWSQ/story/
5 María Brenes, directora general de Relaciones Institucionales y Sostenibilidad del BN: “Los mercados financieros están evolucionando en forma innovadora y con este nuevo tipo de bonos sociales participamos del esfuerzo global para financiar proyectos sostenibles con el fin de reducir la pobreza en todo el mundo. En Costa Rica, esta emisión beneficia la banca inclusiva que empodera y brinda mayor participación económica de las mujeres y las mipymes. Ambas son esenciales para generar empleo y bienestar en el país.” Refer to: https://www.elfinancierocr.com/brandvoice/ecosistema/bn-109-anos-de-impulsar-el-desarrollo-economico/3EH5PGQVK5F47E35CVWDW6BWSQ/story/
6 Michelle Miranda, BN Segment, BNCR. Refer to 2:45 mark of: https://www.youtube.com/watch?v=NUeR7nc_dQs&t=5s
7 Andrea Martinez testimonial: “Lo más valioso fue el crecimiento personal el desarrollo del liderazgo en mi diariamente y como eso aplica a las personas a mi alrededor.”
8 Iliana Aguilar, vocera de la Secretaría Asociación y Desarrollo Reserva Indígena Cabécar de Chirripó: “Ahora hay más mujeres que quieren unirse, participar, que quieren integrarse y aprender de liderazgo. Con la ayuda de todos ustedes y del Banco Nacional, tenemos más fuerza, valor y ganas de hacer cosas diferentes.” Refer to: https://www.elfinancierocr.com/brandvoice/ecosistema/bn-109-anos-de-impulsar-el-desarrollo-economico/3EH5PGQVK5F47E35CVWDW6BWSQ/story/
9 Michelle Miranda, BN Segment, BNCR. Refer to 2:45 mark of: https://www.youtube.com/watch?v=NUeR7nc_dQs&t=5s
10 Lauren Pochereva, FinDev Canada Program Officer, quoted on January 25, 2025.
