IDB Invest signed a USD70 million loan with Guatemala’s Banco Agromercantil to strengthen its capacity to lend for green construction and mobility projects by small and medium-sized enterprises (SMEs), the Interamerican Development Bank’ subsidiary announced today in statement.

The deal between IDB Invest and Banco Agromercantil (Bam), a subsidiary of Grupo Bancolombia in Guatemala, was announced during the United Nations Conference on Climate Change (COP26), in Glasgow.

The 10-year loan will be complemented by technical advisory services that seek to enhance Bam’s capabilities to identify investment opportunities in the construction and green mobility sectors, the statement said.

This financing will allow Bam to develop its SME portfolio and that of green loans (construction and green mobility), the latter through the improvement of existing products, the first of their kind in Guatemala, and the design of new products to finance housing sustainable and non-traditional electric and hybrid vehicles. These green finance efforts will be aligned with Guatemala’s climate goals under the Paris Agreement, according the public release.

IDB Invest, a member of the IDB Group, is a multilateral bank promoting economic development in Latin America and the Caribbean through the private sector. The bank has USD13.1 billion in assets under management and 385 clients in 25 countries.