Bogotá Makes History with $600M Green Bond to Fund Climate-Smart Mobility

This green bond is the first of its kind issued by a municipal government in Latin America, setting a precedent for other cities in the region.

Bogotá, Colombia has made history in Latin America by becoming the first municipality in the region to successfully issue an international green bond, raising funds to accelerate its transition toward a more sustainable, inclusive, and climate-resilient urban future. The landmark bond, valued at COP 2.3 trillion (approximately USD $600 million), was unveiled during the National Infrastructure Congress in Cartagena, with participation from the Mayor’s Office of Bogotá, the International Finance Corporation (IFC), CAF–Development Bank of Latin America and the Caribbean, and the European Union Delegation in Colombia.

The issuance not only exceeded expectations by drawing COP 3.1 trillion in demand—1.34 times the amount offered—but also attracted 93.4% of its investors from international markets, underlining global confidence in Bogotá’s financial management and its commitment to sustainable urban development.

A Milestone for Latin America’s Subnational Green Finance

This green bond is the first of its kind issued by a municipal government in Latin America, setting a precedent for other cities in the region. By tapping into international capital markets, Bogotá is demonstrating the power of subnational finance to fund high-impact, socially inclusive, and environmentally sustainable infrastructure.

“We celebrate the market’s confidence and international support for Bogotá’s fiscal management and sustainable vision. This green bond is a key tool to transform mobility and quality of life in the city,” said Bogotá Mayor Carlos Fernando Galán.

Financing Flagship Sustainable Mobility Projects

Proceeds from the bond will finance transformative urban mobility infrastructure aimed at reducing travel times, lowering emissions, and improving quality of life for millions—especially for low-income communities.

Key projects funded include:

• The first line of the Bogotá Metro, a long-awaited mass transit solution

• The San Cristóbal and Potosí aerial cable lines, connecting underserved hillside neighborhoods

• The new Calle 13 TransMilenio corridor, designed for high-capacity bus rapid transit

These initiatives are projected to:

• Cut travel times by more than 70% for daily commuters

• Avoid 158,900 tons of CO₂ emissions annually

• Improve accessibility for vulnerable populations

• Strengthen Bogotá’s climate action and urban inclusion agendas

Collaborative Structuring and Global Investor Confidence

The green bond’s success is credited to a collaborative model that combined technical, financial, and institutional expertise from multiple international partners:

• IFC and CAF served as anchor investors, helping to reduce market risk and attract private capital

• Goldman Sachs and BNP Paribas acted as structuring banks, ensuring compliance with global green finance standards

• The European Union and Global Green Growth Institute supported the launch of Bogotá’s Green, Social, and Sustainable Bond Framework, which established the criteria for eligible projects

“This transaction exemplifies IFC’s commitment to innovative models that maximize private capital mobilization for job creation and sustainable development,” said Elizabeth Martínez de Marcano, IFC Regional Director.

“Subnational governments are decisive actors for sustainable development in Latin America and the Caribbean,” added Ángel Cárdenas, CAF’s Infrastructure Manager.

A Model for Sustainable Cities

Bogotá’s green bond serves as a blueprint for other cities in the region to follow. It showcases how local governments—when equipped with a long-term vision, clear climate and social goals, and the right partnerships—can access global markets to fund sustainable infrastructure.

“Colombia was the first country in Latin America to adopt a green taxonomy similar to the EU’s,” said François Roudié, EU Ambassador to Colombia. “We hope these foreign and multilateral investments will help mobilize more Colombian investments.”

Bond Details and Market Impact

• Structure: Issued in Colombian pesos to preserve local currency alignment

• Size: COP 2.3 trillion (approx. USD $600 million)

• Demand: COP 3.1 trillion (oversubscribed 1.34x)

• Investor Composition:

  • 93.4% international investors

  • 6.6% local investors

• Use of Proceeds: Dedicated to green and social projects under the city's new sustainability framework

The bond directly supports Bogotá’s goals under its Climate Action Plan and contributes to Colombia’s broader climate commitments under the Paris Agreement.

Looking Ahead: Sustainable Urban Development at Scale

With this bond, Bogotá has proven that municipal governments can lead the charge in climate finance. The city now stands as a regional benchmark for how cities can:

• Mobilize international funding

• Integrate environmental and social goals

• Deliver large-scale urban transformation

• Build trust with global investors

As climate challenges intensify and infrastructure needs grow, Bogotá’s pioneering green bond provides a template for scalable urban investment—uniting climate action, social equity, and fiscal innovation.