BBVA and Argos (Grupo Argos) signed a long-term financing agreement through a sustainable loan in an ESG-linked format for COP160bn (US$44.8m) where the loan includes a pricing adjustment mechanism that links the interest rate to the company’s ESG performance.
This transaction is the first of its kind in Colombia and constitutes Grupo Argos' debut in sustainable financing.
The loan granted by BBVA in Colombia to Cementos Argos includes an adjustment mechanism through which the interest rate will be linked to the company's ESG (Environmental, Social and Governance) general performance.
"This is a definite advance in line with our sustainability strategy that fills us with joy, not only because it contributes to our debt profile and reassures our commitment to sustainability as a strategic pillar and source of competitive advantage, but it is also a benchmark of trust for our investors and other stakeholders," said Juan Esteban Calle, Argos CEO.
Mario Pardo, executive president of BBVA Colombia, stated that, "One of BBVA's objectives is to foster more sustainable development and, therefore, it is increasingly necessary for companies to balance their economic, environmental and social perspectives in everything they do. That is why, this sustainable loan, which was formalised with Argos under the ESG Linked criteria, constitutes a milestone in moving towards building a greener future in Colombia."
