Grupo Argos and Bancolombia Execute the First Credit Tied to Gender Equity and Climate Change Indicators in Colombia for COP 392 billion

• The operation modifies the existing debt conditions, so that its interest rate may decrease by up to 100 basis points if two sustainability indicators of the Business Group are met: (i) increase women’s participation in senior management and (ii) reduce greenhouse gas emissions.
• This type of operation represents an innovation of corporate financing and another milestone that demonstrates the commitment of the business group in environmental, social and governance matters (ESG).

Grupo Argos and Bancolombia signed the first credit agreement tied to sustainability indicators, in which the interest rate is linked to the performance of the Business Group companies in terms of gender equity and climate change, in a financing agreement that amends the existing debt conditions for close to COP 392 billion and that will have a maturity of five years. In this sense, the operation does not increase the current indebtedness of Grupo Argos.

The transaction recognizes Grupo Argos’ path and sustainability strategy, allowing it to gain a competitive advantage in financing, linked to compliance with ESG indicators that the company has been working on for more than five years. Grupo Argos will report its progress every year based on meeting the previously defined targets within the credit in terms of gender equity and climate change to benefit from a reduction of up to 100 basis points in the interest rate.

“We are proud to take this significant step, which reaffirms our conviction to promote gender equality and to contribute to the fight against climate change with concrete actions. The two themes are at the heart of the strategy of our business group, in line with the global objectives outlined in the 2030 Agenda for sustainable development ”.

Jorge Mario Velásquez – President of Grupo Argos
 

“This credit represents a milestone in the evolution of our way of doing business towards those who genuinely contribute to the well-being of the whole of society. Our commitment is to accompany our clients in their transition towards a low-carbon economy and to achieve greater progress in indicators such as gender equity, in line with the fulfillment of the Sustainable Development Goals (SDG) ”.

Juan Carlos Mora – President of Bancolombia

With the signing of this agreement, the two organizations contribute to meeting national and global climate targets with regard to climate change and to encourage other companies to promote gender equity inside their organizations. In addition, it opens alternatives for companies to find in the commitment to ESG matters an opportunity to reduce their cost of capital.

This transaction of Grupo Argos, in addition to the ESG credit announced by Cementos Argos in the past days and the issuances of Celsia’s green bonds, reaffirms the business group’s leadership in adopting sustainable financing schemes in the region.