The regional mechanism sets 20 criteria to channel funds into disaster prevention and recovery.
Davivienda announced a regional financing framework for climate catastrophes on September 30, 2026. The lender stated it is the first commercial bank in Latin America to develop such a mechanism, which focuses on adaptation and resilience against climate change and natural disasters.
Developed alongside the International Finance Corporation and the Climate Bonds Initiative, the framework holds a second-party opinion issued by Standard & Poor's. The mechanism defines 20 criteria to finance more than 20 key activities, including water management, resilient agriculture, critical infrastructure, and post-disaster recovery for small and medium-sized enterprises.
The challenge for Colombia and Central America is to change the logic with which we face disasters. We need to move from reacting and rebuilding to anticipating, preventing, and building resilience.
The bank designed the instrument following an earthquake in August that affected hundreds of thousands of people in Colombia. The initiative expands Davivienda's sustainable loan portfolio, which currently exceeds COP 33.9 trillion.
According to the bank, citing UN data, natural disasters affected over 190 million people in Latin America between 2000 and 2020. Developing economies require more than $310,000 million annually for adaptation, while international public flows reached only $26,000 million in 2023.
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