IFC Signs $155 Million Deal With Banco BHD To Boost Sustainable Finance In Dominican Republic

The International Finance Corporation (IFC), a member of the World Bank Group, has signed a financing agreement with Banco BHD, one of the leading financial institutions in the Dominican Republic, to expand sustainable finance and strengthen international trade across the country.

Under the agreement, IFC will provide a financing package of up to $155 million, including long-term funding and mobilized capital for strategic green sectors. The financing will support distributed solar energy, renewable energy generation and storage, sustainable construction, and blue finance projects. A dedicated trade credit line will also help local businesses, particularly small and medium-sized enterprises (SMEs), improve their ability to import and export goods and services.

The partnership also includes technical advisory support from IFC to help Banco BHD align its green financing portfolio with the Dominican Republic’s national green taxonomy. The taxonomy was developed by IFC in collaboration with the Superintendence of the Securities Market and the Ministry of Environment and Natural Resources.

Through the advisory support, Banco BHD aims to translate climate-related guidelines into practical business opportunities and increase private investment in sectors that are important for the country’s environmental and economic development.

The agreement is described as the first transaction of its kind in the Caribbean region. It comes as the Dominican Republic faces significant climate risks from storms, floods, droughts, and other extreme weather events. Without effective measures to strengthen climate resilience, these risks could reduce the country’s gross domestic product by as much as 16.5 percent in the coming years.

The latest agreement builds on a long-standing relationship between IFC and Banco BHD that began in 2003. Over the past two decades, IFC has supported the bank through equity investments, subordinated loans, working capital facilities, and advisory programs aimed at strengthening financial inclusion and supporting local businesses.

Both institutions said the expanded partnership will help improve private-sector resilience, strengthen the competitiveness of the Dominican economy, and support sustainable job creation.

The financing is expected to play an important role in accelerating the country’s transition toward a more sustainable economy while improving access to capital for businesses and projects contributing to climate resilience and environmental development.