Laying the ground for green transport

Project summary: Alongside the Colombian Stock Exchange (“BVC”) and Climate Bonds, we launched the Colombian Green, Social, Sustainable and Sustainability-linked (GSS+) Bonds Accelerator Program. The aim is to support new issuers structuring thematic debt instruments.

As part of the initiative, our Advisory & Capacity Building team collaborated with the European Union to conduct a series of training sessions across Colombia. These focused on thematic-labelled bonds within the transport sector.

Thematic bonds are critical for closing the funding gap in sustainable transport

In Colombia, the transport sector is responsible for 11% of national GHG emissions. Sustainable finance tools like GSS+ bonds are crucial for funding projects that reduce emissions across rail, air, river, sea and land transport. But there is a significant infrastructure investment gap in this sector requiring 7% of GDP annually. Given the sector’s importance and its emissions, it is essential that we both close the funding gap and accelerate Colombia’s transition to sustainable infrastructure.

LAGreen is equipping leaders to address the funding gap

Our Advisory & Capacity Building team ran workshops in Cali, Medellín, Bogotá and Barranquilla to equip leaders with the expertise to issue GSS+ bonds. These bonds help issuers secure funding for sustainable projects in alignment with the Climate Bonds Standard and Colombian Green Taxonomy.

Issuing these bonds enhances sustainability across the transport sector

By issuing labeled bonds, issuers can accelerate a low-carbon, resource-efficient, and climate-resilient economy. At the same time, these bonds position Colombia as a leader in sustainable bond issuance and enable investors to contribute to a wider positive impact.

Impact Spotlight: Enabling transport company Metro de Medellín to issue its first thematic bond

Founded in 1979, Metro de Medellín is jointly owned by the Department of Antioquia and Municipality of Medellín. A mass transportation company serving ten Colombian municipalities, it moved over 311 million passengers in 2023 and saved 209 million travel hours. It also supports sustainable mobility projects across Latin America.

In 2022, Metro de Medellín began structuring a thematic bond, but ultimately missed its 2023 issuance target. Due to the time required to fulfil the requirements and the complexity of this new process, the company opted instead to use traditional debt financing. Following its participation in the GSS+ Bonds Accelerator Program in 2024, however, Metro de Medellín reaffirmed its commitment to issuing a thematic bond and made substantial progress by updating its framework according to best international standards.  

By November 2024, Metro de Medellín had already registered with the Superintendencia Financiera, began legal and technical structuring, and was finalising its Sustainable Bonds Framework (including the Second Party Opinion).

With this newly revised framework, Metro de Medellín is now preparing to issue its new bond in the second half of 2025.