IFC and Promigas Make History with Colombia's First Private Sector Social Bonds in Real Economy

Social Bond Initiative Aims to Boost Financial Inclusion and Energy Efficiency for Vulnerable Colombian Households.

The International Finance Corporation (IFC), a member of the World Bank Group, announced a groundbreaking agreement to issue social bonds worth COP$540 billion (approximately US$130 million equivalent). This marks the first-ever social bond issuance by a private company in Colombia's real economy. The bonds will be jointly issued by Promigas, Surtigas, and Gases de Occidente, with funds directed toward empowering vulnerable communities through access to credit and energy-efficient products.

The proceeds from the social bonds will finance Brilla, an innovative credit program serving Colombia’s most vulnerable populations. Targeting strata 1, 2, and 3 households—comprising 94% of its clientele—Brilla addresses the financial exclusion faced by these communities. Since its inception in 2007, the program has issued COP$8.4 trillion in loans, offering a lifeline to those without access to traditional banking services.

Brilla currently boasts 817,479 active clients, with an average loan size of COP$2.5 million. The program maintains a low default rate, demonstrating the trust and compliance of its clients. Loans finance essential products and services such as home improvements, appliances, and solar panels, which enhance energy efficiency, reduce carbon emissions, and contribute to the fight against multidimensional energy poverty.

“With the issuance of social bonds, we reaffirm our commitment to financial inclusion and sustainable development. We offer vulnerable communities a simple and accessible mechanism to finance products and services that improve their quality of life," said Juan Manuel Rojas, President of Promigas.

IFC’s Role and Vision

The IFC’s involvement in this initiative underscores its commitment to fostering financial innovation for sustainable development. Cheryl Edleson Hanway, IFC’s Director of Infrastructure, Energy, and Mining for Europe, Latin America, and the Caribbean, emphasized the transformative potential of the bonds:

"We are proud to support Promigas in its first issuance of social bonds. This collaboration demonstrates the power of innovative financing mechanisms to address the needs of vulnerable populations and promote sustainable development. Together, we can create a more inclusive and resilient future," she said.

Expanding Financial Inclusion and Sustainability

Beyond financial inclusion, the bonds aim to generate measurable environmental and economic benefits by driving energy efficiency and reducing household emissions. The initiative also bolsters Colombia's broader goals of reducing poverty and enhancing energy access in underserved regions.

The social bonds initiative aligns with IFC’s broader strategy to encourage private sector participation in sustainable financing and promote solutions to global challenges such as inequality and climate change.

Next Steps

Promigas and its partners plan to leverage the success of this issuance to further expand Brilla’s reach and diversify its offerings. The program will explore opportunities to finance renewable energy installations, digital tools for education, and health-related products, ensuring that Colombia’s vulnerable populations continue to benefit from sustainable and inclusive economic growth.

This landmark collaboration between IFC and Promigas sets a precedent for other private sector players in Colombia and across Latin America, demonstrating the potential of social bonds to unlock development opportunities and drive systemic change.