IDB Invest, FinDev Canada, and BNCR support SMEs in Costa Rica with the country’s first issuance of a Social Bond.
BLP has advised our clients, IDB Invest as lead arranger and investor, and FinDev Canada as an investor in connection with the first issuance of a social bond in Costa Rica in accordance with the Social Bond Principles issued by the International Capital Markets Association. This is a private dematerialized subordinated issuance for a total of up to $75 million, issued by Banco Nacional de Costa Rica (BNCR). The Social Bond is regulated under Costa Rica law and structured under two series, subscribed as follows by the investors: $45 million by IDB Invest and $30 million by FinDev Canada.
The financing seeks to strengthen BNCR’s capital structure through a new injection of secondary capital that will facilitate access to financing for micro, small and medium-sized enterprises (MSMEs) in Costa Rica, as well as to grow its “BN Mujer” portfolio, which is oriented to women-owned and women-led SMEs. This issuance is not only BNCR ’s first social bond but also that of Costa Rica.
“BLP is proud to have advised on yet another groundbreaking financing by IDB Invest and FinDev Canada. This novel financing, which represents the first social bond issued in Costa Rica, will not only strengthen transactions for capital markets in Costa Rica with the issuance of a local bond, in this specific case, it will also help expand financial product offerings directed toward women business owners in Costa Rica.” said Pablo Umaña, Partner at BLP.
The BLP team that advised IDB Invest and FinDev Canada was led by: