USA / COLOMBIA – IDB Invest became the first multilateral development bank to invest in a domestic money market fund in Colombia. With the objective of supporting development projects, the total amount invested in the two funds, Fiducuenta and Renta Liquidez, since the initial financing in October 2023 was COP 172 billion (approximately $44 million).
IDB Invest partnered with Citibank and Grupo Bancolombia Capital to design and implement a structure to allow foreign investors to access domestic mutual funds. It is an unprecedented development in the Colombian capital market.
“Local currency financing is essential to increase development impact through the private sector in Latin America and the Caribbean. Well-functioning money markets are at the center of effective management and pricing of liquidity in domestic markets. Thanks to our strong collaboration with Citibank and Grupo Bancolombia Capital, we are pleased to open new doors for foreign investors to invest in money market funds in Colombia,” said IDB Invest’s Treasurer, Janne Sevanto.
“It has been an incredible journey, and we are truly grateful for the opportunity to collaborate with IDB Invest in this groundbreaking initiative that opened the possibility for foreign investors to access new asset classes in Colombia. We look forward to continuing this partnership to develop and grow the Colombian capital market,” said Felipe Motta, market specialist head at Citi Colombia.
“At Grupo Bancolombia Capital, we are so proud to have the first multilateral development bank, IDB Invest, to invest in two of our Money Market Funds through a local custodian (fiduciary entity). This opens the doors to foreign investors interested in the efficient management of their liquidity, additionally complementing it with medium and long-term investment possibilities. Those are innovative solutions in Colombia and lead us to contribute to deepening the local market for the benefit of the country”. said Mauricio Rosillo, Business vice president at Bancolombia.
This innovation broadens the spectrum of available investment alternatives for foreign investors in Colombia and plays an important role in contributing to the development of domestic capital markets.
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