News from 2026-10-20 / DEG
DEG provides USD 150 million to Banco de Occidente for green finance in Colombia
DEG is providing Banco de Occidente with USD 150 million in Tier II financing, marking DEG’s largest financing commitment in Latin America to date.
Banco de Occidente is a universal bank and the fifth-largest financial institution in Colombia. It serves corporate, small and medium-sized enterprise (SME) and retail clients, offering a broad range of financial products and services. The bank employs more than 7,000 people, 59 per cent of whom are women, making it an important employer in Colombia’s financial sector.
The subordinated loan will strengthen the bank’s regulatory Tier II capital base and create additional scope for growth. At least 80 per cent of the funds will be used to finance eligible green projects and businesses, thereby supporting Colombia’s transition to a low-carbon and climate-resilient economy.
Latin America has been one of DEG’s core business regions for many years, with a current portfolio volume of around EUR 3.5 billion in private sector investments. At USD 150 million, this transaction is DEG’s largest financing commitment in Latin America to date. It reflects our confidence in Banco de Occidente and our shared vision of future-oriented financial services
, says Monika Beck, Member of DEG’s Management Board.
Expanding responsible finance
Banco de Occidente regards sustainability as a strategic pillar for long-term value creation and for managing the economic, social, environmental and governance impacts associated with its operations and business activities.
The bank promotes sustainable development through green and responsible finance, financial education programmes and climate reporting aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). As a signatory to the Partnership for Carbon Accounting Financials (PCAF), it has also committed to measuring and reducing the greenhouse gas emissions associated with its lending and investment portfolio.
This transaction will contribute to the Sustainable Development Goals on clean energy, sustainable economic growth and climate action.
Strengthening environmental and social management
In addition to the financing, Banco de Occidente will receive technical assistance from DEG Impulse to strengthen its environmental and social management system (ESMS). The programme will also include comprehensive training for relevant employees. A separate Green Loan Quick Assessment will help the bank identify further opportunities in sustainable finance and reinforce its position in this growing market.