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Honduras bank to expand ‘green’ loans

by: - July 29, 2011
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Logo of the Inter-American Bank. Photo credit: smartcampaign.org

WASHINGTON, USA — The Inter-American Development Bank (IDB) has announced the approval of a $30 million green line facility for Banco Atlántida of Honduras to support its loans to environmentally sustainable projects. The medium-term financing facility consists of a $20 million senior A loan from the IDB and a senior B loan to be syndicated by the IDB, targeted at $10 million.

Banco Atlántida is in the process of developing a “green” portfolio of loans directed at small and medium-size corporate borrowers that will cover a number of eligible sectors, including renewable energies, energy efficiency and biofuels, among others.

“The IDB looks forward to enhancing its support to Honduras through this new green line as we advance in our efforts to serve key economic sectors for our development strategy,” said Daniela Carrera-Marquis, chief of the IDB’s Financial Markets Division. “In addition to generating important environmental benefits, this investment will increase the availability of much needed medium- and long-term funding for local small and mid-size corporates, key drivers of employment generation in Honduras.”

The growth of a long-term sustainable lending portfolio in Banco Atlántida will contribute to the marketability of a business line that can scale up sustainable investments while demonstrating its environmental and commercial attractiveness. “Financial institutions can be important agents of positive change due to their ability to identify and leverage new sustainable initiatives,” said IDB project team leader Gema Pérez.

As part of the financing, the IDB will support Banco Atlántida in the development of green line eligibility criteria to determine the process for identifying, selecting, and monitoring green projects.

“We are pleased to partner with the IDB and work together to achieve a positive impact in the Honduran competitive environment, promoting a more sustainable economy and investments with a strong economic base,” said Banco Atlántida Executive President Guillermo Bueso Anduray.

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