A&O Shearman Advises on BBVA Perú’s Landmark $100 Million Gender Social Bond Issuance  

A&O Shearman has played a pivotal role in advising BBVA Perú on its ground-breaking issuance of a $100 million social gender bond, aimed at enhancing financial inclusion for women-led small and medium-sized enterprises (SMEs) in Peru.

The team, led by partner Alejandro A. Gordano, alongside associate Gonzalo Robles and visiting attorney Regina Odar, provided critical guidance throughout this innovative transaction, underscoring their commitment to supporting impactful initiatives that foster positive social change.

This collaboration with IDB Invest marks BBVA Perú’s first international private gender social bond and features performance-based incentives. The funds generated from this issuance will significantly enhance access to credit for micro and small businesses spearheaded by women, representing a milestone in Peru’s banking sector.

The deal comprises two series of senior bonds totaling up to $200 million over five years. The first series includes an investment of $75 million from IDB Invest and $25 million from Corporación Financiera de Desarrollo S.A. (COFIDE), with additional investors contributing the remaining $100 million to stimulate the thematic bond market in Peru.

Miranda & Amado also assisted as counsel to BBVA Perú, while Rodrigo, Elías & Medrano Abogados provided counsel to IDB Invest, and Hunton Andrews Kurth served as counsel to COFIDE. This collaborative effort highlights the extensive legal support involved in this landmark transaction.

The initiative is backed by the Women Entrepreneurs Financing Initiative (We-Fi), which aims to improve financing and market access for women-owned businesses. IDB Invest will provide BBVA Perú with a monetary bond of up to $190,000, contingent on meeting annual objectives related to the growth of its portfolio of small female-led enterprises.

"This international issuance of a social bond by a Peruvian bank marks a significant achievement in promoting sustainable and inclusive finance," stated Marisela Alvarenga, head of Industries and Crosscutting Themes (a.i.) at IDB Invest.

Fernando Eguiluz, CEO of BBVA Perú, emphasized the impact of the bond, stating, "It is estimated that 4 out of 10 Peruvian entrepreneurs are women. This social bond will provide opportunities for growth and development for those entrepreneurs looking to elevate their businesses and improve their families’ living conditions."

With this transaction, A&O Shearman continues to affirm its commitment to empowering female entrepreneurs and facilitating their access to essential financial resources, aligning with several United Nations Sustainable Development Goals, including Gender Equality (SDG 5) and Decent Work and Economic Growth (SDG 8).

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