BNCR - Social Subordinated Bond (IDBI-13280-01)

  • Costa Rica
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 27, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Banco Nacional de Costa Rica
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Apr 20, 2021

Disclosed by Bank Apr 16, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed transaction consists of a social subordinated bond of up to US$75 million which will be funded in up to US$50 million by IDB Invest and the rest (up to US$25 million) by other impact investors. IDB Invest will support Banco Nacional de Costa Rica ("BNCR" or the "Bank") to launch its first social bond in accordance with the Social Bond Principles issued by the International Capital Markets Association ("ICMA"). The bond aims to support the Bank in financing Small and Medium-Sized Enterprises ("SMEs"), as well as to grow its "BN Mujer" portfolio which is oriented to women-owned and women-led SMEs.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.







Strengthen the Environmental and Social Risk Management System (ESRS) Manual to include SMEs

Supplement ESRS: (i) extend the scope of SARAS to include SMEs (i.e., the ESRS application threshold should be adjusted to cover this asset class), (ii) including a Basicassessmentfor SMEs subloans focused on local law and E&S requirements at the national level; (iii) including the IDB-Invest and FinDev exclusion list; and (iv) reviewing ESRS Table 1 setting out the criteria used to define the inherent level of risk of an activity to include greenhouse gas emissions and supply chain risks related to each project;

Strengthened Manual of the Environmental and Social Risk Management System ("ESRS").

6 months after first disbursement


Strengthen the Sustainable Financing Policy

Review the Sustainable Financing Policy to include: (1) commitment to comply with the host country's environmental and social regulatory requirements; (2) comply with IDB Invest and FinDev exclusion lists; and (3) establishing that the IFC Performance Standards are on the underlying risk management standard for higher risk transactions (e.g. Expert Level).

Sustainable Financing Policy strengthened

4 months after the first disbursement


Evaluation of the first three medium or high E&S risk SME transactions

Banco Nacional de Costa Rica will send the first three transactions categorized with medium and/or high environmental and/or high inherent risk for review and comment by IDB Invest, in order to: (i) confirm E&S categorization; and (ii) evaluate the proposed action plan

Pilot project implementation and evaluation report

When the Bank has any of the transactions


Capacity building and training

The Bank, through an external consultant, will train all credit, E&S and sustainability risk personnel in the implementation of the ESRS following the IDB-Invest/FinDev exclusion list, local regulations and Performance Standards. Ensure that all new ESRS assessment and/or implementation staff receive training

Certificate of training of the personnel in charge of the ESMS implementation and every time new staff is hired

6 months after the first disbursement and every time new personnel are incorporated into risk management.

[1]Interpretation note on Financial Intermediaries

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The investment type was not available at the time of the snapshot.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client contact name: Ms. Silvia Chaves Herra
Title: Director of Institutional Relations and Sustainability
Telephone: (506) 2212-2000 Ext: 2140 C


You can submit a request for information disclosure at:


The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to You can learn more about the MICI and how to file a complaint at,1752.html (in English) or,1752.html (Spanish).

How it works

How it works