Financing Jul 30, 2019 1:55 PM
Colombia’s Foreign Trade Bank (Bancoldex) issued a new credit line to promote investment in sustainable projects.
Bancoldex made a CoP$100B new credit line available for entrepreneurs, looking to promote investment in sustainable development and energy efficiency projects.
The initiative was developed together with the Ministry of Commerce, Industry and Tourism, El Nuevo Siglo said.
“Energy efficiency is a necessity to improve the country’s productivity and competitiveness. Bancoldex is working to create financial mechanisms that help entrepreneurs increase their productivity, while mitigating the environmental impact of their economic activity,” Bancoldex’s Javier Díaz said.
The expert added that the resources will be used to develop projects such as the reduction or re-use of liquid, solid or atmospheric emissions, and the improvement of air quality, among others.
CoP$30B out of the CoP$100B budget will be allocated to long-term loans, and entrepreneurs will have from five to seven years to pay back the credit, with a grace period of up to one year.
The remaining CoP$70B will be allocated to medium-term loans.
Entrepreneurs can apply for the loans through banks, financial corporations, financing companies and financial cooperatives that have an available quota at Bancoldex.
Bottom-line: This is exactly what the sector needs to hear. Help from financial corporations is not only welcomed, but necessary to boost a rapid-growing sector like this one.
The good news adds to last week’s announcement of Colombia’s second renewable energy auction, on October 22nd this year.