Investment Portfolio

Fundación CRUSA Will Invest In Sustainable Bonds to Boost the Reactivation of Tico’s SMEs

The Costa Rica United States of America Foundation for Cooperation (CRUSA) approved the investment of US $ 500,000 of its assets, in sustainable bonds, in order to expand the green credit portfolio in the country and promote the development of new instruments for the financing of small and medium enterprises.

This is the first issue of sustainable bonds by Banco Promérica de Costa Rica SA, which becomes the first Central American bank to issue bonds of this type on the Panama Stock Exchange, which have the support of IDB Invest, through a partial guarantee.

For the CRUSA Foundation, venturing into sustainable funds is a very important step to promote impact investments and contribute to economic reactivation by financing the portfolio of SMEs, companies led by women and green loans in the country, which are aligned with the Green Bond Principles (ICMA, 2018b).

The social investments that will be financed with the resources of the Sustainable Bond seek to grant short-term working capital, so that SMEs can hire new positions and advance with their operations. For green investments, the use of the funds is projected to focus on renewable energy and energy efficiency.

Impact investment is defined as investments in the equity of an organization, with the intention of generating financial results,
in addition to a measurable social impact. For Flora Montealegre, Executive Delegate of the CRUSA Foundation, venturing into sustainable bonds is a milestone for CRUSA, as with this, the Foundation reaffirms its commitment to promoting Costa Rica’s transition towards a greener, more inclusive, and innovative economy.

“We hope that through this investment, more favorable conditions will be provided for access to credit for SMEs that develop green businesses and that we will advance along the path of decarbonization of our economy.”

About the bonds

Through Resolution No. SMV 552-20 of December 22, 2020, the Superintendency of the Securities Market of Panama authorized the registration of the public offering of Rotating Sustainable Corporate Bonds (“Sustainable Bonds”), to be issued by Banco Promérica of Costa Rica, SA (“The issuer”) up to an amount of US $ 50 million. The first issue of these Sustainable Bonds is through series “A” for an amount of US $ 10 million with a two-year term.

From this first issue, the CRUSA Foundation will invest US $ 500,000, becoming the first investment operation carried out in this type of instrument in the local market. This financial placement will help improve access to financing for small and medium-sized Costa Rican companies (SMEs) and expand their green credit portfolio.

“Cooperating organizations, financial and non-financial, as well as all those that execute projects, play a very important role in carrying out projects that have a positive impact on the communities. As we know, the needs are many and the resources are limited. For this reason, today and especially in such a complex economic environment, we consider it vitally important to stimulate the use of different financial instruments that serve to boost the local financial market, seeking, above all, to give sustainability to these projects and achieve a lasting impact on the development of the country”, concluded Flora Montealegre, Executive Delegate of the CRUSA Foundation.

The resources raised by the first issuance of sustainable bonds will be made available to Costa Rican SMEs through the financial products of Banco Promérica, an institution that has incorporated into its strategy supporting the United Nations Sustainable Development Goals (SDG) and was the first Costa Rican bank to sign the United Nations Principles for Responsible Banking.

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