COFIDE, Peru's Development Bank, issued its second Blue Bond on the local market for S/ 120 million (approximately US$ 35.3 million), with a one-year term. The bonds will continue to finance microloans for water and sanitation infrastructure projects benefiting families in rural and peri-urban areas of the country.
This issuance exceeded the first Blue Bond of 2024 by S/ 20 million (approximately US$ 6 million) and achieved a rate of 4.53125% (a spread of 64 basis points over one-year certificates of deposit (CDs) issued by the Central Reserve Bank of Peru), a reduction from last year's rate of 4.72%.
The auctioned amount was allocated as follows: Private Pension Fund Administrators (42%), Public Sector Entities (23%), Insurance Companies and Health Promoting Entities (16%), Mutual Funds (15%), and Financial Institutions (4%).
“This new Blue Bond will allow us to increase our support for one of the programs that best exemplifies our role as a development bank, mobilizing resources to address basic needs such as access to water and sanitation services for vulnerable families who are included in the financial system through municipal savings banks,” stated Jorge Velarde, executive president of COFIDE.
The funds raised will be used to finance or refinance loans that will allow families to install a bathroom, purchase water tanks, or access water and/or sewage connections in their homes.
This operation goes on in alliance with the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC) and Water.org.
And, this will be possible thanks to the specific participation of the Municipal Savings and Credit Banks of Arequipa, Huancayo, Cusco, Ica, Piura, and Trujillo.
With this new issuance, COFIDE consolidates its leadership as the main issuer of thematic bonds in the Peruvian capital market, accumulating eight local issuances of this type for more than S/ 860 million (around US$ 254 million), which included four social bonds, one sustainable bond, one green bond, and two blue bonds.
In addition, COFIDE carried out two international issuances (one social and one sustainable) for US$ 700 million.
These bond issuances require COFIDE to place and report the use of the funds raised in projects and programs that meet the sustainability criteria established in its thematic framework for issuances.
Peru's first Blue Bond, issued last year for S/ 100 million (approximately US$ 30 million), benefited more than 91,000 people, primarily in the interior of the country (more than 30% of beneficiaries are from Arequipa, Puno, and Junín).
This population was able to access microloans for water and sanitation solutions, resulting in an improved quality of life.
(END) NDP / MDV
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Published: 10/29/2025