Bogotá authorized for 70 million euro KfW loan

The Ministry of Finance and Public Credit authorized Bogotá, Capital District, to enter into an external loan with the German bank KfW for up to seventy million euros (EUR 70,000,000), without a national guarantee. The decision was formalized in Resolution number 2068 of 2026, signed on September 9, 2026, by Minister Miguel Gómez Martínez and published in edition 53,620 of the Official Gazette, on page 1.

The loan funds will be used to partially finance programs and projects framed within Strategic Objective 4, “Bogotá organizes its territory and advances its climate action,” of the District Development Plan “Bogotá Walks Safely 2024-2027.” The operation is within the global debt limit authorized by the Bogotá Council through Agreement number 939 of 2024, for the amount of 9,589,686,798,002 constant pesos of 2024.

Regulatory framework and prior procedure

The authorization is issued in exercise of the powers conferred by article 2.2.1.2.1.4 of Decree number 1068 of 2015, which requires a resolution from the Ministry of Finance for external public credit operations of territorial entities. The process had the favorable opinion of the National Planning Department (DNP) via official letter number SCCI 20264380092051 of February 16, 2026, and the endorsement of the District Council for Economic and Fiscal Policy (CONFIS) through Minutes number 36 of November 28, 2025.

The final draft of the contract was approved by the General Directorate of Public Credit and National Treasury via official letter with filing number 2-2026-060917 of August 24, 2026. Bogotá has a “coAAA” credit rating granted by S&P National Ratings, according to a report dated July 23, 2026, a requirement mandated by Law 819 of 2003 for the contracting of new credits.

Financial conditions of the loan

The financial terms and conditions of the credit, approved by the General Directorate of Public Credit and National Treasury, are as follows:

Amount: EUR 70,000,000.
Amortization: nineteen (19) consecutive and, as far as possible, equal semi-annual installments; the first will be paid on November 15, 2029, and the last on November 15, 2038.
Interest rate: fixed annual rate determined by the lender on the date of signing the loan agreement.
Commitment fee: 0.25% per year on the amounts to be disbursed, payable semi-annually on May 15 and November 15 of each year.
Management fee: 0.50% of the loan amount, payable by the borrower as a one-time payment.

Obligations of the District

The resolution establishes that the quota of the DNP’s favorable opinion will be affected by the disbursement of the contract, and that Bogotá must ensure that, individually or in aggregate, the amount specified in the favorable opinions of the Council, CONFIS, and the DNP is not exceeded. The District must send a copy of the loan to the General Directorate of Public Credit and National Treasury within ten calendar days following its perfection, and present information on the balances and movements of the operation until the total payment of the debt.

Payments shall be subject to the budgetary appropriations that Bogotá includes in its annual expenditure budgets. The authorization does not exempt the District from compliance with other applicable regulations, including External Resolution number 17 of 2015 and External Resolution number 1 of 2018 of the Board of Directors of the Banco de la República, and External Regulatory Circular DODM 145 of October 30, 2015.

Relevance for the capital

The operation represents a relevant step in Bogotá’s climate financing strategy, by channeling external resources from a German development bank toward territorial planning and climate action projects. As it is a loan without a National guarantee, the capital fully assumes the debt risk, backed by its “coAAA” rating, within the framework of a global borrowing quota that still maintains an available balance of 8,952,761,107,152 pesos.

Source: Official Gazette (Colombia), edition 53,620, September 9, 2026, section I, p. 1 (official reference: Resolution number 2068 of 2026).