Grupo Argos formalises COP392bn sustainable linked loan

Grupo Argos formalises COP392bn sustainable linked loan
28 April 2021

Grupo Argos and Bancolombia signed the first loan agreement tied to sustainability indicators in Colombia, where the interest rate is tied to the company’s performance on gender equality and climate change, in a financing agreement that modifies current conditions for close to COP392bn (US$106m) in debt and will have a five-year maturity. In this regard, the operation does not increase Grupo Argos' current levels of indebtedness. 

This transaction recognises Grupo Argos' track record and its sustainability strategy, allowing it to obtain a competitive financing advantage and tied to compliance with environmental, social and governance (ESG) indicators that the company has been working on for over five years. Annually, Grupo Argos must report progress made with meeting gender equality and climate change goals defined under the terms of the loan to receive the benefit of a reduced interest rate. 

"We are proud of this significant step, which reaffirms our commitment to driving gender equality and contributing to fighting climate change with concrete actions. Both of these topics lie at the heart of our Business Group’s strategy, in line with global goals defined in the 2030 Agenda for Sustainable Development," said Jorge Mario Velásquez, Grupo Argos CEO.

Published under Cement News