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REPORT ANNUAL

OUR BANK

ANNUAL REPORT

2014: 10 HIGHLIGHTS

INSTITUTIONAL VIDEO

CONTACTS

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INDEX | VERSIÓN ESPAÑOL

OUR BANKABOUT BANCÓLDEXTHE NEW BANCÓLDEX

WE ARE PARTNERS OF ENTREPRENEURS WHO DARE TO GROW, SO TOGETHER WE PURSUE OUR SHARED GOAL. WE ARE CONVINCED THAT COLOMBIA’S TRANSFORMATION IS ONLY POSSIBLE IF WE BECOME A COUNTRY WITH STRONGER AND MORE DYNAMIC ENTERPRISES THAT ENJOY EXTRAORDINARY GROWTH, WHICH GOES BEYOND OUR BORDERS, BECOMING AN EXAMPLE FOR THE REGION AND THE WORLD.

BANCÓLDEX OBJETIVE

THE BANK’S OBJECTIVE IS TO PROMOTE THE DEVELOPMENT OF COLOMBIAN COMPANIES THAT WISH TO GROW. BANCOLDEX PROVIDES ACCESS SOLUTIONS AND INTEGRATED SUPPORT PLATFORMS THAT FACILITATE THEIR EVOLUTION AND TRANSFORMATION.

WHAT IS OUR TARGET MARKET?

OUR TARGET MARKET ARE VISIONARY AND FOCUSED ENTREPRENEURS THAT ARE ABLE TO LEAD CHANGE IN THEIR INDUSTRIES, DARING TO GROW AND MAKE DECISIONS IN A DIFFERENT WAY AND MAKINGCONNECTIONS WHERE OPPORTUNITIES EXIST.

HOW DO WE WORK?

WE OFFER FINANCIAL PRODUCTS AND SERVICES ACCORDING TO COMPANIES’ GROWTH CIRCUMSTANCES. WE ACTIVATE STRONG, DYNAMIC ENTREPRENEURIAL REGIONS IN ORDER TO DEVELOP A MORE COMPETITIVE ENVIRONMENT.

PRODUCTS AND SERVICES DEVELOPED BY THE NEW BANCOLDEX ARE SUPPORTED BY THE FOLLOWING GROWTH PLATFORMS, IN WHICH COMPANIES ESTABLISH THEIR POSITIONS AND GOALS DEPENDING ON THEIR GROWTH STATUS.

THESE PLATFORMS OR BUSINESS UNITS ARE:

COMPANIES WITH GROWTH POTENTIAL IN ALL REGIONS

INSTITUTIONAL PROMOTING COMPETITIVENESS IN THE REGIONS

MOVILIZATION OF RESOURCES FORENTREPRENURIAL GRWOTH

DEVELOP AND INTELIGENT CAPITAL INDUSTRY IN COLOMBIAENTREPRENURIAL MODERNIZATION AND

TRANSFORMATION FOR THE LOCAL MARKET

SUPPORT TO BUSINESS INITIATIVES THATCAN GROW IN A FAST PROFITABLE AND

SUSTAINED MANNER, BASED ON INNOVATION

MARKET LEADERS WITH INTERNATIONALIZATION POTENTIAL

INCLUSION OF GLOBAL VALUE CHAINS

CAPITAL FUNDS

GROTH PLATFORM

MARKET SOURCES

BANCÓLDEX

ENTREPRENURIAL ESCALATION GLOBAL FLOW

MENTALITY AND CULTURE

EXTRAORDINARYGROWTH

INVESTMENT AND TRANSFORMATION

INTERNATIONALEXPANSION DYNAMIC ECOSYSTEMS


EXPORT-IMPORT, IED COMPANIES HIGH IMPACT ENTREPRENEURSHIP

INCLUSION OF GLOBAL VALUE CHAINS

ENTREPRENEURIAL ESCALATIONTHIS PLATFORM INCLUDES MORE THAN 10,000 COMPANIES AND THEIR ENTREPRENEURIAL ECOSYSTEMS. BASED ON THE NEEDS OF THESE COMPANIES, BANCOLDEX DEVELOPS CUSTOMIZED PRODUCTS THAT PROMOTE COMPANY GROWTH AND MODERNIZATION AT REGIONAL LEVELS.

GLOBAL FLOWS

THE PURPOSE OF THIS PLATFORM IS TO INVIGORATE NEW GLOBAL FLOWS WITH COUNTRIES THAT HAVE ENTERED INTO FREE TRADE AGREEMENTS (FTAS) WITH COLOMBIA. THROUGH ITS NETWORK OF INTERNATIONAL BANKS OVERSEAS, BANCOLDEX PROMOTES EXPORTS OF GOODS AND SERVICES, IMPORTING TECHNOLOGY AND FINANCING DIRECT FOREIGN INVESTMENT.

THIS PLATFORM FOCUSES ON THREE (3) TYPES OF CLIENTS:

• SPECIALIZED COMPANIES THAT EXPORT, HELPING THEM TO REDUCE BARRIERS AND SUPPORT GLOBAL FINANCIAL PRODUCTS IN ORDER TO TAKE SIGNIFICANT ADVANTAGE OF RECENTLY SIGNED FTAS.

• INDUSTRY PIONEERS WHO IMPORT TECHNOLOGY: HIGHLY SPECIALIZED COMPANIES THAT HAVE THE OPPORTUNITY TO SUCCESSFULLY EXPORT GOODS AND SERVICES AFTER IMPORTING STATE OF THE ART TECHNOLOGY.

• INNOVATIVE GLOBAL COMPANIES: AGGRESSIVELY IDENTIFY INNOVATIVE COMPANIES IN DYNAMIC INDUSTRIES THAT CAN CONTRIBUTE TO ENTREPRENEURIAL ECOSYSTEMS.

EXTRAORDINARY GROWTHTHIS PLATFORM LEADS AND EXPANDS A MENTALITY OF EXTRAORDINARY ENTREPRENEURIAL GROWTH, PROVIDING ENTREPRENEURS WITH THE NECESSARY ACCESS TO INSTRUMENTS THAT WILL TRIGGER THEIR GROWTH.

THIS PLATFORM SUPPORTS COMPANIES WITH EXTRAORDINARY GROWTH POTENTIAL IN THREE DIFFERENT STAGES:

• START-UPS: COMPANIES WITH IMPORTANT GROWTH POTENTIAL.

• SCALE-UPS: COMPANIES WITH REVENUE OF MORE THAN USD 1 MILLION THAT HAVE THE POTENTIAL TO DOUBLE THEIR RESULTS EVERY THREE YEARS.

• CORPORATE ENTREPRENEURSHIP: NEW BUSINESSES EMERGING WITHIN COMPANIES THAT ENGAGE IN DISRUPTIVE INNOVATION AND LEVERAGE CORPORATE ASSETS.

INVESTMENT AND TRANSFORMATIONTHIS PLATFORM STRENGTHENS RELATIONSHIPS WITH PROVIDERS THAT HAVE DIFFERENT TYPES OF “INTELLIGENT CAPITAL”, HELPING THEM TO BECOME AWARE OF THEIR INVESTMENT CHALLENGES IN ORDER TO CONSTRUCT PRODUCTS AND SERVICES THAT SUPPORT THESE ASSETS, TURNING THESE INTO BUSINESS MODELS AND RE-STRUCTURING THE COMPANIES TO IMPROVE THEIR GROWTH POTENTIAL.

THIS PLATFORM FOCUSES ON INTERNATIONAL FUNDS AND INVESTMENTS WITH A PRESENCE IN COLOMBIA AND LOCAL FUNDS AND BOUTIQUE INVESTMENT BANKS WITH TRANSACTIONS EXCEEDING $10M USD.

INTERNATIONAL GROWTH (INTERNATIONALIZATION) 1

THIS PLATFORM SUPPORTS COMPANIES TO EXPAND THEIR MARKETS OUTSIDE COLOMBIA AND FOCUSES ON COMPANIES WITH PARTICIPATION OF MORE THAN 25% WITHIN THEIR NATIONAL MARKET OR SEGMENT. WITH THIS PLATFORM, BANCOLDEX’S NETWORK OF BANKING CORRESPONDENTS OVERSEAS ALLOWS THESE COMPANIES TO REDUCE THE BARRIERS FOR ENTERING NEW MARKETS AND DEVELOP THEIR ACCESS AND PRESENCE IN OTHER COUNTRIES.

DYNAMIC ECOSYSTEMSTHE PURPOSE OF THIS PLATFORM IS TO STRENGTHEN THE CONDITIONS OF ENTREPRENEURIAL ECOSYSTEMS IN ORDER TO EXPLOIT THEIR POTENTIAL. BANCOLDEX WILL OFFER A SET OF TOOLS THAT INCLUDE IMPORTANT INFORMATION AND KNOWLEDGE WITH THE OBJECTIVE OF OPENING TWO-WAY DIALOGUE WITH ENTREPRENEURS AND STAKEHOLDERS WHO SUPPORT COMPETITIVENESS AT REGIONAL LEVEL. USING THIS PLATFORM, BANCOLDEX WILL ALSO PROVIDE SUPPORT TO ENTREPRENEURS WITH NON-FINANCIAL PRODUCTS AND SERVICES THAT HELP TO PROMOTE THEIR GROWTH.

1 COMPANIES WITH A PRESENCE IN AT LEAST ONE COUNTRY OUTSIDE COLOMBIA.


CECILIA ÁLVAREZ - CORREA GLENMinister of Commerce,

Industry and Tourism

MAURICIO CÁRDENAS SANTAMARÍAMinister of Finance

AUGUSTO LÓPEZ VALENCIARepresentative of the private sector, appointed

by the President of Colombia

GUILLERMO VALENCIA JARAMILLO Representative of the private sector, appointed

by the Exporters’ Association and registered with the Department of Foreign Trade

NICOLÁS GARCÍA TRUJILLORepresentative of Shareholders

MEMBERS

OUR BANK

FELIPE SARDI CRUZBusiness Development Vice-Minister

Appointed by the Minister of Commerce, Industry and Tourism (in process of taking up the post)

CHRISTIAN RAFAEL JARAMILLO HERRERA Organizational Management Director - DIAN

MARÍA FERNANDA CARVAJAL SINISTERRA Representative of the private sector, appointed

by the President of Colombia

LUIS GUSTAVO FLÓREZ ENCISORepresentative of the private sector, appointed by the

Exporters’ Association and registered with the Department of Foreign Trade

BEATRIZ EUGENIA VÉLEZ VENGOECHEA Representative of Shareholders

SUBSTITUTES

ORGANIZATION

BOARD OF DIRECTORS


ORGANIZATIONORGANIZATION CHART

COMMUNICATIONS AND CORPORATE IMAGE OFFICE

STRATEGIC MANAGEMENTDEPARTMENT

TREAASURYDEPARTMENT

ACCOUNTING MANAGEMENTDEPARTMENT

CORPORATE FINANCEOFFICE

TAX MANAGEMENTOFFICE

FINANCIAL RISKDEPARTMENT

PRIVATE EQUITY DEPARTMENT

CONTINUITY BUSINESS AND SECURITY INFORMATION OFFICE

RISK OPERATIONAL OFFICE

LOAN DEPARTMENT

OPERATIONS DEPARTMENT

INFORMATION TECHNOLOGY DEPARTMENT

COMPLIANCE OFFICE

BUSINESS INTELLIGENCE DEPARTMENT

ENTERPRISE BANKING DEPARTMENT

NATIONAL COMERCIAL DEPARTMENT

INTERMEDIARY FINANCIAL BANKING DEPARTMENT

COSTUMER SERVICE OFFICE

ENTERPRISE BUSINESS FOMATION OFFICE

INTERNATIONAL BUSINESS DEPARTMENT

ADMINISTRATIVE SERVICE DEPARTMENT

LEGAL DEPARTMENT

HUMAN DEVELOPMENT DEPARTMENT

ORGANIZATIONAL DELOPMENT DEPARTMENT

INNOVATION OFFICE

COOPERATION AND INTERNATIONALRELATIONS OFFICE

COMPTROLLER’S OFFICE

INNOVATION AND DEVELOPMENT UNIT MANAGEMENT

INVESTMENT PROGRAM FOR BANKING OPPORTUNITIES MANAGEMENT

PRODUCTIVE TRANSFORMATION PROGRAM MANAGEMENT

INNOVATION ANDMODERNIZATION FUND MANAGEMENT

GENERAL SHAREHOLDERS MEETING

BOARD OF DIRECTORS

PRESIDENCY

LEGAL VICEPRESIDENCY AND GENERAL

STRATEGIC EXECUTIVE VICEPRESIDENCY

RISK VICEPRESIDENCY FINANCIAL VICEPRESIDENCY

OPERATIONS VICEPRESIDENCY

COMMERCIAL VICEPRESIDENCY

ADMINISTRATIVE VICEPRESIDENCY

OUR BANK


ORGANIZATIONMANAGEMENT TEAM

SPECIAL PROGRAMS

OUR BANK

LUIS FERNANDO CASTRO VERGARA

MAURO SARTORI RANDAZZO

PRESIDENT [email protected]

FERNANDO ESMERAL CORTÉSCHIEF COMMERCIAL OFFICER

[email protected]

JOSÉ ALBERTO GARZÓN GAITÁNSECRETARY GENERAL

[email protected]

BEATRIZ ELENA ARBELÁEZ MARTÍNEZCHIEF FINANCIAL OFFICER

[email protected]

MARÍA DEL MAR PALAU MADRIÑANCHIEF EXECUTIVE AND STRATEGY OFFICER

[email protected]

JIMENO PERDOMO RIVERACHIEF ADMINISTRATIVE [email protected]

RISK [email protected]

JORGE GARCÍA ANDRADECHIEF OPERATIONS OFFICER

[email protected]

MARÍA CONSUELO JARAMILLO GUZMÁNCOMPTROLLER

[email protected]

OLGA LUCÍA MATAMOROS VELASQUEZRISK MANAGEMENT DEPARTMENT, DIRECTOR

[email protected]

BANKING OPERATIONS DEPARTMENT, [email protected]

CARLOS MAURICIO ALDANA MÉNDEZADMINISTRATIVE SERVICES DEPARTMENT, DIRECTOR

[email protected]

HERNANDO CASTRO RESTREPOLOCAL BANKING DEPARTMENT, DIRECTOR

[email protected]

MARCELA GONZALEZ ALFONSOINTERNATIONAL OPERATIONS DEPARTMENT, DIRECTOR

[email protected]

ANA RUTH MARTÍNEZ PEÑATECNOLOGY DEPARTMENT, [email protected]

CLAUDIA MARÍA GONZALEZ ARTEAGATREASURER

[email protected]

MARTHA YOLIMA CAGÜEÑAS BONILLAHUMAN DEVELOPMENT DEPARTMENT, DIRECTOR

[email protected]

DORIS ARÉVALO ORDOÑEZ

BUSINESS INTELLIGENCE DEPARTMENT, [email protected]

PEDRO JULIO VILLABÓN GONZÁLEZENTERPRISES BANKING DEPARTMENT, DIRECTOR

[email protected]

ALEJANDRO CONTRERAS AMADORINTERNATIONAL BUSINESS DEPARTMENT, DIRECTOR

[email protected]

MARÍA JOSÉ NARANJO SZAUERSTRATEGIC DIRECTION DEPARTMENT, DIRECTOR

[email protected]

CÉSAR AUGUSTO PÉREZ BARRETONATIONAL COMMERCIAL DEPARTMENT, DIRECTOR

[email protected]

MARGARITA CORONADO GÓMEZPRIVATE EQUITY FUND DEPARTMENT, DIRECTOR

[email protected]

JAIRO PEDRAZA CUBILLOS ACCOUNTING DEPARTMENT, DIRECTOR

[email protected]

JUAN CARLOS SARMIENTO ESPINELLEGAL DEPARTMENT, DIRECTOR

[email protected]

CLAUDIA CECCOTTI DO CARMOINTERNAL DEVELOPMENT DEPARTMENT, DIRECTOR

[email protected]

CLAUDIA MARCELA BENAVIDES BERNALOFFICE DIRECTOR - CALI

[email protected]

LINA BUSTAMANTE JANNAOFFICE DIRECTOR - BARRANQUILLA

[email protected]

SONIA MARCELA GARCÍA FEOOFFICE DIRECTOR- MEDELLÍN

[email protected]

DIANA SANTAMARÍA RAMIREZPRESS AND COMMUNICATIONS DEPARTMENT, DIRECTOR

[email protected]

CATALINA ORTIZ LALINDE MANAGING DIRECTOR, INNPULSA COLOMBIA

[email protected]

CESAR AUGUSTO PEÑALOZA PABON MANAGING DIRECTOR, PRODUCTIVE

TRANSFORMATION PROGRAM [email protected]

CLAUDIO ALBERTO MORENO LOPEZMANAGING DIRECTOR, INNPULSA MIPYME

[email protected]

JULIANA ALVAREZ GALLEGO

BANK OF OPPORTUNITIES PROGRAM, [email protected]

RICARDO MESA MUÑOZ


CHART OF PRODUCTS AND SERVICESOUR BANK

LIQUIDITY FOREIGN TRADEENTREPRENEURIALMODERNIZATION

CREDIT LINES

OTHER OPERATIONSAND BANKING SERVICES

MICRO INSURANCE

TRAINING

CAPITALIZATION INSURANCETYPE OF PRODUCT

WORKING CAPITAL & ENTREPRENEURIAL SUSTAINABILITY

ENTREPRENEURIAL MODERNIZATION

SPECIAL QUOTAS / REGIONAL AGREEMENTS AND OTHER ALLIES

PURCHASER CREDIT, SUPPLIER AND CORRESPONDENT

DOCUMENTS DISCOUNT

ENTREPRENEURIAL INNOVATION

SUSTAINABLE DEVELOPMENT

ENTREPRENEURIAL TRAINING PROGRAM

INTERNATIONAL BANKING OPERATION

EQUITY FUNDS PROGRAM

LIFE ENSURANCE ENTREPRENEURS

DESTINATION / NEED


PRODUCTS AND SERVICESOUR BANK

01. CREDIT LINESWORKING CAPITAL AND FUNDING ENTREPRENEURIAL EXPENSES

PROVIDE SUPPORT TO ENTREPRENEURIAL ACTIVITY AND CONTRIBUTE TO THE ECONOMIC GROWTH OF MICRO, SMALL MEDIUM AND LARGE ENTERPRISES IN ALL ECONOMIC SECTORS OF THE COUNTRY. THIS CREDIT LINE PROVIDES RESOURCES FOR FINANCING OPERATIONAL EXPENSES AND OTHER LIQUIDITY NEEDS OF ENTERPRISES FOR THEIR FUNCTIONING AND DEVELOPMENT.

IN ADDITION, IT ALLOWS ENTERPRISES TO CARRY OUT A PROCESS OF RESTRUCTURING LIABILITIES, DECREASING SHORT-TERM DEBT CONCENTRATION AND TRANSFERRING THESE DEBTS TO A LONGER TERM WITH PAYMENT INTERVALS ADJUSTED TO THE BUSINESS CYCLE, HENCE IMPROVING THEIR CASH FLOW STRUCTURE. SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE

ENTREPRENEURIAL MODERNIZATION

THE PURPOSE OF THIS CREDIT LINE IS TO ATTEND TO INVESTMENT NEEDS FOR FIXED OR DEFERRED ASSETS OF MICRO, SMALL, MEDIUM AND LARGE ENTERPRISES FOR DEVELOPING PROJECTS ORIENTATED TOWARDS INCREASING PRODUCTIVITY AND COMPETITION STANDARDS, ACQUISITION OF NEW TECHNOLOGIES, RESTRUCTURING PRODUCTIVE APPARATUS, ENVIRONMENTAL PROTECTION AND OTHER EXPANSION PLANS, BOTH AT NATIONAL AND INTERNATIONAL LEVELS.

THE RESOURCES FOR THIS CREDIT LINE MAY BE CHANNELED THROUGH DIFFERENT FINANCING MECHANISMS SUCH AS LEASING, CREDIT FOR THE COMPANY OR CREDIT THROUGH PARTNERS OR SHAREHOLDERS.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE, CAPITALIZATION

SPECIAL CREDIT QUOTAS - AGREEMENTS WITH TERRITORIAL ENTITIES AND STRATEGIC ALLIES

IN ORDER TO STRENGTHEN FINANCIAL SUPPORT FOR THE ENTREPRENEURIAL SECTOR, BANCOLDEX DEVELOPS PARTNERSHIPS WITH ENTITIES SUCH AS MINISTRIES, DEPARTMENTAL GOVERNMENTS, MUNICIPAL COUNCILS, INTERNATIONAL COOPERATION AGENCIES AND OTHERS. THESE PARTNERSHIPS HAVE THE PURPOSE OF ESTABLISHING SPECIAL CREDIT QUOTAS IN ORDER TO PROVIDE LIQUIDITY, IN PESOS OR DOLLARS, FOR DIFFERENT ENTREPRENEURIAL SECTORS IN ACCORDANCE WITH THEIR GEOGRAPHICAL LOCATION, COMPANY SIZE OR THE DESTINATION OF RESOURCES, WITH PREFERENTIAL FINANCIAL CONDITIONS.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE, ENTREPRENEURIAL MODERNIZATION, CAPITALIZATION

SUSTAINABLE DEVELOPMENT

ALTERNATIVE FINANCING FOR MICRO, SMALL, MEDIUM AND LARGE ENTERPRISES FROM ALL ECONOMIC SECTORS THAT REQUIRE INVESTMENTS IN MEASUREMENT, CONTROL AND MONITORING SYSTEMS, FOCUSED ON MITIGATING THE NEGATIVE EFFECTS OF ENTREPRENEURIAL ACTIVITY ON THE ENVIRONMENT.

THE OBJECTIVE OF THIS CREDIT LINE IS TO PROMOTE AN ENTREPRENEURIAL APPROACH FOR BUSINESS SUSTAINABILITY, INCREASING PRODUCTIVITY AND COMPETITIVENESS IN MARKETS THAT DEMAND HIGH ENVIRONMENTAL STANDARDS AND INCLUDE VALUE ADDED GOODS AND SERVICES IN A COMPANY’S PORTFOLIO THAT HAVE A STRONG FOCUS ON ENVIRONMENTAL CARE AND PROTECTION.

INNOVATION

THIS CREDIT LINE RESULTED FROM COOPERATION BETWEEN BANCOLDEX, THE INNPULSA PROGRAM AND THE MINISTRY FOR TRADE, INDUSTRY AND TOURISM. ITS MAIN OBJECTIVE IS TO SUPPORT COMPANIES AND RESEARCH AND DEVELOPMENT ENTITIES THAT HAVE ADOPTED AN INNOVATION CULTURE INTO THEIR BUSINESS MODEL. THIS AREA FINANCES THE WORKING CAPITAL AND INVESTMENT NEEDS OF THE COMPANIES, OFFERING LONG TERM AND LOW RATE LOANS.

COMPANIES CAN ACCESS THESE LOANS EITHER BY SECOND TIER LOANS OR SECOND TIER LEASING OPERATIONS.

SPECIAL NEEDS: ENTREPRENEURIAL MODERNIZATION


THESE SPECIAL CREDIT QUOTAS INCLUDE, DEPENDING ON THE CASE, LIMITS ON THE MAXIMUM FINANCING AMOUNTS FOR EACH ENTERPRISE, AS WELL AS COMPLIANCE WITH PARTICULAR CONDITIONS IN ORDER TO GAIN ACCESS TO THESE RESOURCES.

02. OTHER OPERATIONS AND SERVICES CREDIT FOR PURCHASERS, SUPPLIERS OR CORRESPONDENTS

THE PURPOSE OF THESE CREDIT MECHANISMS IS TO FINANCE FOREIGN PURCHASERS OF COLOMBIAN GOODS AND SERVICES THROUGH FINANCIAL INTERMEDIARIES THAT HAVE PREVIOUSLY OBTAINED POSITIVE RATINGS FROM BANCOLDEX OR BY BANKS WITH AN INVESTMENT GRADE RATING. IN ADDITION, ENGINEERING OR CONSTRUCTION PROJECTS ARE FINANCED, TO BE DEVELOPED TOTALLY OR PARTIALLY BY ENTERPRISES BASED IN COLOMBIA.

THE PURCHASE OF COLOMBIAN GOODS IS ALSO FINANCED BY THE LATIN AMERICAN INTEGRATION ASSOCIATION (LAIA) PAYMENT AGREEMENT FOR MEMBER COUNTRIES THROUGH BANKS AUTHORIZED TO OPERATE SUCH AGREEMENTS.

THESE CREDIT MECHANISMS ALSO PROVIDE SUPPORT TO FINANCIAL INTERMEDIARIES WITH CREDIT RESOURCESPREVIOUSLY RATED BY BANCOLDEX, WITH PRE-FINANCING OPERATIONS FOR EXPORTS OR MEETING THE FINANCING NEEDS FOR IMPORTS FROM OTHER COUNTRIES.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE

DOCUMENTS DISCOUNT

BANCOLDEX DIRECTLY BUYS EXPORTATION CERTIFICATES FROM COLOMBIAN EXPORTERS, WHICH ARE SUPPORTED BY AN ELIGIBLE BANK:

• ACCEPTANCES OR DEFERRED PAYMENTS GENERATED BY LETTERS OF CREDIT.

• NOTES ENDORSED BY FINANCIAL INTERMEDIARIES ABROAD WITH DIRECT QUOTAS OR IRREVOCABLE REIMBURSEMENT COMMITMENTS.

• INVOICES OF PURCHASES AND SALES OR BILLS OF EXCHANGE ACCEPTED BY THE IMPORTER AND BACKED BY A STAND-BY LETTER OF CREDIT.

PROGRAM - BANCOLDEX CAPITAL

THE BANCOLDEX CAPITAL PROGRAM IS AN INITIATIVE DESIGNED TO PROMOTE THE DEVELOPMENT OF THE PRIVATE CAPITAL AND RISK CAPITAL INDUSTRIES IN COLOMBIA.

THE PROGRAM HAS TWO COMPONENTS:

• FINANCIAL SUPPORT: INVESTMENT IN PRIVATE CAPITAL FUNDS AND ENTREPRENEURIAL CAPITAL FUNDS. BANCOLDEX DOES NOT DIRECTLY INVEST IN COMPANIES.

• NON-FINANCIAL SUPPORT: THROUGH THE PROMOTION OF BEST PRACTICE AMONG INVESTORS, MANAGERS, COMPANIES AND OTHER ACTORS OF THE INDUSTRY, BANCOLDEX CONTRIBUTES TO THE CONSTRUCTION OF AN ECOSYSTEM FOR THE CAPITAL FUNDS INDUSTRY.

OBJECTIVES OF THE PROGRAM

• PROVIDE THE AVAILABILITY OF NEW LONG TERM FINANCING SOURCES FOR COLOMBIAN ENTERPRISES THROUGH FRESH CAPITAL FROM THE CAPITAL FUNDS.

• PROMOTE THE PRIVATE AND ENTREPRENEURIAL CAPITAL FUNDS INDUSTRY IN THE COUNTRY.

• ATTRACT NEW LOCAL AND FOREIGN INVESTORS TO PARTICIPATE IN THE CAPITAL FUNDS INDUSTRY IN THE COUNTRY.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE

PURCHASE OF INVOICES – LIQUIDEX

THROUGH THIS PRODUCT BANCOLDEX PURCHASES THE VALUE OF THE INVOICES ORIGINATING FROM THE SALEWITH CREDIT OF GOODS AND SERVICES IN COLOMBIA OR OVERSEAS FROM NATIONAL MARKET ENTERPRISES AND DIRECT OR INDIRECT EXPORTERS. THIS PRODUCT OPERATES UNDER TWO SCHEMES:


03. MICRO-INSURANCE

LIFE INSURANCE FOR ENTREPRENEURS

THIS SCHEME GRANTS PROTECTION TO MICRO-ENTREPRENEURS AND THEIR FAMILIES IN CASE OF ACCIDENTAL OR NATURAL DEATH OR SUICIDE, TOTAL OR PERMANENT DISABILITY AND SERIOUS ILLNESSES. IN ADDITION IT OFFERS ADDITIONAL COVERAGE SUCH AS SUPPORT FOR FUNERAL EXPENSES AND FAMILY EXPENSES DUE TO DEATH OR DISABILITY.

SPECIAL NEEDS: INSURANCES

04. FORMATION AND TRAININGENTREPRENEURIAL FORMATION

THIS PROGRAM SUPPORTS ENTREPRENEURS TO STRENGTHEN THEIR MANAGEMENT SKILLS, THROUGH TRAINING, PUBLICATIONSAND ENTREPRENEURIAL ACCOMPANIMENT SERVICES, WHICH CONTRIBUTE TO IMPROVING THEIR OPERATION, PERFORMANCE AND COMPETITIVENESS.

IN-PERSON TRAINING

ENTREPRENEURS UPDATE THEIR KNOWLEDGE IN DIFFERENT ORGANIZATIONAL AREAS TO IMPROVE THEIR MANAGEMENT SKILLS. THE MAIN TOPICS COVERED BY THE IN-PERSON TRAINING ARE: ENTREPRENEURIAL FORMALIZATION; STRATEGIC PLANNING; ACCOUNTING AND FINANCIAL MANAGEMENT; FOREIGN TRADE; HUMAN RESOURCES MANAGEMENT; MARKETING, SALES AND CUSTOMER SERVICE; GOOD CORPORATE GOVERNMENT PRACTICES; ENVIRONMENTAL MANAGEMENT; AND ENTREPRENEURIAL SOCIAL RESPONSIBILITY, AMONG OTHERS.

VIRTUAL TRAINING

AS A SUPPLEMENT TO THE IN-PERSON TRAINING, AND TO SUPPORT INDIVIDUAL TRAINING INITIATIVES FOR ENTREPRENEURS, BANCOLDEX OFFERS THE FOLLOWING VIRTUAL COURSES:

• FINANCE: THE KEY FOR ENTREPRENEURIAL SUCCESS• MANAGEMENT CONSULTANCY FOR INTERNATIONAL NEGOTIATIONS• MANAGEMENT ASPECTS TO GAIN CREDIT ACCESS

ENTREPRENEURIAL ACCOMPANIMENT

THROUGH ALLIANCES WITH OTHER ORGANIZATIONS SUCH AS UNIVERSITIES, A DIAGNOSTIC OF THE MAIN ASPECTS OF A COMPANY ARE CARRIED OUT TO DETERMINE,THE ACTIONS FOR IMPROVEMENT, IN COLLABORATION WITH THE ENTREPRENEUR.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE, ENTREPRENEURIAL MODERNIZATION, CAPITALIZATION, INSURANCE.

LIQUIDEX PESOS - DOLLARS

A COMPANY THAT SELLS GOODS OR SERVICES AND HAS ITS PORTFOLIO INSURED WITH A CREDIT INSURANCE POLICY, WITH THE POSSIBILITY OF DISCOUNTING SUCH INVOICES DIRECTLY WITH BANCOLDEX AT COMPETITIVERATES.

LIQUIDEX PRODUCTIVE CHAINS

THROUGH A GLOBAL CREDIT INSURANCE POLICY, BANCOLDEX COVERS THE PORTFOLIO OF A PURCHASER COMPANY SO ITS SUPPLIERS IN COLOMBIA MAY DIRECTLY DISCOUNT ITS INVOICES AT COMPETITIVE RATES WITH BANCOLDEX.

*WITH THESE SCHEMES, BANCOLDEX PROVIDES UNCONDITIONAL LIQUIDITY TO SUPPLIER COMPANIES, AS THEY DO NOT REQUIRE A CREDIT QUOTA ANALYSIS IN ORDER TO HAVE ACCESS TO THIS PRODUCT.

SPECIAL NEEDS: LIQUIDITY, FOREIGN TRADE

INTERNATIONAL BANKING OPERATION

THIS IS A FINANCIAL TOOL SO THAT COLOMBIAN EXPORTERS INSURE THEIR INTERNATIONAL BUSINESSES AND MITIGATE THE PAYMENT DEFAULT RISK OVERSEAS.

THROUGH THE CORRESPONDING BANKING NETWORK, BANCOLDEX OFFERS:

• CONFIRMATION OF LETTERS OF CREDIT FOR EXPORTS.• MANAGEMENT OF DOCUMENT COLLECTIONS.• MANAGEMENT OF PAYMENT ORDERS.• PURCHASE / SALE OF FOREIGN CURRENCY FOR FOREIGN TRADE OPERATIONS• CONFIRMATION OF BANK GUARANTEES.


SPECIAL PROGRAMSOUR BANK

IN ORDER TO PROMOTE ENTREPRENEURIAL DEVELOPMENT, BANCOLDEX OFFERS SEVERAL SUPPORTING INSTRUMENTS THAT PROVIDE INTEGRATED SUPPORT TO COLOMBIAN ENTREPRENEURS DURING EACH OF THEIR GROWTH STAGES. IN ADDITION TO OFFERING TRADITIONAL CREDIT, BANCOLDEX HAS SPECIAL PROGRAMS SUCH AS INNPULSA COLOMBIA AND INNPULSA MIPYME, BANK OF OPPORTUNITIES AND THE PRODUCTIVE TRANSFORMATION PROGRAM.

iNNPULSA COLOMBIA

• INNP

• IN ORDER TO ATTRACT CREDIT RESOURCES TO FINANCECOMPANY GROWTH DURING THE INITIAL STAGES, A PILOT PROGRAM ON FINANCIAL READINESS AND BANKING AWARENESS WAS IMPLEMENTED IN TWO (2) CITIES (BARRANQUILLA AND CALI), IN WHICH MORE THAN 150 ENTERPRISES RECEIVED WORKSHOPS AND PERSONALIZED CONSULTANCIES. IN ADDITION TO BANCOLDEX, CREDIT LINES FOR INNOVATION AND ENTREPRENEURIAL GROWTH WERE STRUCTURED, WHICH FACILITATED THE LEVERAGING MORE THAN $COP 145,000 MILLION IN CREDIT FOR THISCOMPANY SEGMENT.

• THE PILOT PROGRAM FOR COLLABORATIVE INNOVATIONIN HYDROCARBONS AND MINING DESIGNED DURING 2012 AND 2013 WAS ABLE TO SUPPORT SEVERAL OF COLOMBIA’SLEADING COMPANIES (ECOPETROL, INDEPENDENCE, TIPIELAND ARGOS) TO IDENTIFY EMERGING CHALLENGES SO THAT SMALLER COMPANIESCOULD OFFER THEM TECHNOLOGICAL SOLUTIONS. THESE COMPANIES FOUND SOLUTIONS, EVEN INSECTORS THAT WERE DIFFERENT TO THEIR OWN, AND EXPECT SAVINGS OF APPROXIMATELY $122 BILLION PESOS AND POTENTIAL SALES FOR THESE SOLUTION-BASED COMPANIES OF APPROXIMATELY $15 BILLION PESOS OVER THE NEXT THREE (3) YEARS.

ULSA COLOMBIA HAS DIRECTLY CONTRIBUTED CAPITAL IN THE INITIAL STAGES TO MORE THAN SIXTY (60) ENTERPRISES AS CO-FINANCING. THESE PARTNERSHIP INSTRUMENTS ARE DEVELOPED WITH OTHER ENTITIES, SUCH AS THE MINISTRY OF CULTURE.


ACHIEVEMENTS

1. INNPULSA COLOMBIA HAS CONTRIBUTED TO PROMOTING CHANGES IN BUSINESS MENTALITY AND CULTURE, ENABLING COMPANIES TO GROW IN A RAPID AND SUSTAINED MANNER.

• INNPULSA COLOMBIA HAS ACTIVATED NATIONAL AND REGIONAL DIALOGUE ON INNOVATION AND DYNAMIC ENTREPRENEURIALISM. THIS HAS INVOLVED MORE THAN 9,000 PEOPLE THAT HAVE PARTICIPATED INEVENTS SUCH AS HEROES FEST, THE GLOBAL ENTREPRENEURIAL WEEK AND THE EXTRAORDINARY ENTREPRENEURS TOUR, AMONG OTHERS.

• INNPULSA COLOMBIA HAS HAD A POSITIVE IMPACT

INNPULSA COLOMBIA IS A PROGRAM THAT FOSTERSENTREPRENEURIAL INNOVATION AND BUSINESSENTREPRENEURIALISM WITH A GLOBAL SCOPE. THIS PROGRAMIS BASED ON THE PRINCIPLE THAT BUSINESS AND INNOVATION CONTRIBUTE TO THE SUSTAINED GROWTH OF THE COLOMBIAN ECONOMY. THE PROGRAM’S GOAL IS TO SUPPORT COMPANIES THAT CONTRIBUTE TO EXTRAORDINARY ENTREPRENEURIAL GROWTH THROUGH INNOVATION, UPDATING OR MODERNIZATION AND ENGAGING IN HIGH POTENTIAL ENTREPRENEURIALISM.

ON COLOMBIAN ENTREPRENEURIAL CULTURE THROUGH THE SHARING OF INSPIRING HISTORIES THROUGH ITS COLOMBIA INN NEWS AGENCY. TO DATE THE AGENCY HAS ACHIEVED MORE THAN 1,800 PUBLICATIONS IN NATIONAL AND INTERNATIONAL MEDIA AND ALSO EDITS THE “DINÁMICOS” SUPPLEMENT THAT IS DISTRIBUTED THROUGHOUT COLOMBIA, REACHING MORE THAN 250,000 COLOMBIANS.

2. INNPULSA COLOMBIA CORRECTS MARKET FAULTS: INNPULSA INJECTS RESOURCES WHERE NEEDED AND CONNECTS AND ACTIVATES SUPPLY AND DEMAND, PROVIDING DIRECT SERVICE TO COMPANIES SO THAT THEY CAN HAVE THE BEST TOOLS TO GROW.

• THE CREATION OF THREE (3) INVESTMENT FUNDS (VELUM, NAZCA AND SOCIAL ATOM) WAS FINANCED IN 2013, OF WHICH IN 2014, VELUM WAS STILL OUTSTANDING, WITH AN INITIAL CLOSURE OF $22 BILLION PESOS. THE FUND HAS MADE EIGHT (8) INVESTMENTS TO DATE TOTALING $5.8 BILLION PESOS.

• THE COLOMBIA CO4 COLLABORATIVE INNOVATION PROGRAM SUPPORTED ELEVEN (11) OF COLOMBIA’S LEADING COMPANIES TO CHARACTERIZE 32 TECHNICAL, TECHNOLOGICAL, INVESTIGATIVE AND CONCEPTUAL CHALLENGES.

• THE EXPOSURE AND EXPERIENCE GAINED BY TWENTY-FIVE (25) COMPANIES THROUGH THEIR PARTICIPATION ININTERNATIONAL SCENARIOS SUCH AS MASS CHALLENGE, STARTUP TEL AVIV AND NXTPLABS NOT ONLY IMPROVED THEIR SKILLS, BUT ALSO GENERATED KEY CONNECTIONS THAT HELP POSITION COLOMBIA AS A PRODUCER OF COMPANIES THAT ARE MORE AND MORE SOPHISTICATEDAND GLOBALLY FOCUSED.

3. IN THE REGIONS - INNPULSA COLOMBIA STRENGTHENS OF ORGANIZATIONS SO THAT THEY CAN PROVIDE RELEVANT SERVICES TO ENTREPRENEURS FOR THEIR GROWTH BASED ON INNOVATION, AS WELL AS IDENTIFYING BUSINESS STRATEGIES AND SEGMENTS TO IMPROVE COMPETITION AND EARNINGS.

• A TOTAL OF NINETEEN (19) ORGANIZATIONS IN EIGHT (8) COLOMBIAN CITIES HAVE BENEFITTED FROM THE PROCESS, WITH SIX (6) OF THESE HAVING ALREADY COMPLETED THE STRENGTHENING PROCESS. INNPULSA IS NOW ABLE TO PROVIDE BETTER SERVICES TO THE COMPANIES THAT HAVE THE POTENTIAL FOR EXTRAORDINARY GROWTH. THE OTHER THIRTEEN (13) ENTITIES WILL STRENGTHEN THEIR ENTERPRISE INCUBATION AND ACCELERATION CAPABILITIES IN 2015 IN SIX (6) CITIES OF COLOMBIA.

• I NNPULSA COLOMBIA HAS SUPPORTED FIVE (5) KNOWLEDGE-GENERATING ORGANIZATIONS IN ORDER TO INTRODUCE NEW TECHNOLOGIES TO THE MARKET THAT ARE GENERATED BY RESEARCH PROCESSES, WHICH CAN BE APPLIED TO THE PRODUCTIVE SECTOR. THIS PROCESS HAS CONNECTED ORGANIZATIONAL CULTURES TO THE NEEDS OF THE ENTREPRENEURIAL SECTOR.

• THROUGH THE COMPETITIVE ROUTES METHODOLOGY, INNPULSA COLOMBIA TRANSFERRED AND DEVELOPED CAPABILITIES FOR CLUSTER INTERVENTION IN TWENTY TWO (22) DEPARTMENTS OF THE COUNTRY TO IDENTIFY MORE SOPHISTICATED AND PROFITABLE BUSINESS SEGMENTS WHERE COMPANIES CAN COMPETE. THIS OCCURRED IN 2013 AND 2014.

• MORE THAN 50 COMPETITION ROUTES HAVE BEEN DEVELOPED, NOT JUST USING THE RESOURCES OF THE MINISTRY OF COMMERCE, INDUSTRY AND TOURISM THROUGH INNPULSA COLOMBIA, BUT ALSO THROUGH THE RESOURCES OF EACH REGION. THIS DEMONSTRATES HE STRENGTHENING AND ARTICULATION OF LOCAL AND NATIONAL STAKEHOLDERS AS A RESULT OF OUR MANAGEMENT.

• SINCE ITS CREATION IN FEBRUARY, 2012, THE MODERNIZATION AND INNOVATION FUND FOR MSMES HAS ALLOCATED NON-REIMBURSABLE CO-FINANCING RESOURCES OF MORE THAN COP $137,000 MILLION TO 338 PROJECTS, WHICH ARE EXPECTED TO BENEFIT 45,393 COLOMBIAN MSMES. THE TOTAL VALUE OF PROJECTS SUPPORTED BY THE FUND IS COP $195,738 MILLION.

• IN 2014, COP $57,005 MILLION WAS ALLOCATED TO 100 FEASIBLE PROJECTS. THE PROJECTS SUPPORTED IN 2014 ARE EXPECTED TOBENEFIT 21,135 MSMES LOCATED IN 30 DEPARTMENTS, REPRESENTING 93% OF THE NATIONAL TERRITORY.

• DURING 2014, THE FUND WAS ABLE TO OBTAIN MORE THAN COP $25,191 MILLION FROM THE PRIVATE SECTOR (FOR EACH $2.2 PESOS THAT THE FUND PROVIDES AS CO-FINANCING, THE PRIVATE SECTOR CONTRIBUTES $1 PESO), FOR A TOTAL INVESTMENT OF COP $82,197 MILLION IN PROJECTS THAT BENEFIT MSMES. THIS IS HOW THE FUND HAS DEVELOPED INTO A JOINT WORK MODEL BETWEEN THE GOVERNMENT AND THE PRIVATE SECTOR, FAVORING THE GROWTH AND PROGRESS OF MSMES IN COLOMBIA.

• IN 2014, AS A RESULT OF THE FUND’S RESOURCES, A TOTAL OF TWENTY TWO (22) COMPANIES DEVELOPED INNOVATIVE PRODUCT OR SERVICE PROTOTYPES UNDER THE ENTREPRENEURIAL INNOVATION INITIATIVE. THE VALUE OF CO-FINANCING NON-REIMBURSABLE RESOURCES ALLOCATED TO THESE PROJECTS WAS COP $5,704 MILLION.

• IN 2014, THE FUND ALLOCATED NON-REIMBURSABLE CO-FINANCING RESOURCES OF COP $7,879 MILLION TO 30 PROJECTS THAT SUPPORT THE STRENGTHENING OF PRODUCTION CHAINS FORMED BY MSMES. THIS WAS ACHIEVED THROUGH SUPPLY CHAIN MEETINGS AND THE STRENGTHENING OF MSMESIN THE DAIRY PRODUCT SECTOR. A TOTAL OF 342 COMPANIES RECEIVED THIS BENEFIT.

• DURING 2014, TWENTY FIVE (25) PROJECTS TO STRENGTHEN MSMES DEVELOPED BY VICTIMS OF FORCED DISPLACEMENT AND THE AFRO-DESCENDENT POPULATION WERE SUPPORTED THROUGH THE ALLOCATION OF NON-REIMBURSABLE CO-FINANCING RESOURCES TOTALING COP $13,528 MILLION, BENEFITTING 3,794 MSMES. IN THIS MANNER, THE FUND HAS CONTRIBUTED TO THE GOVERNMENT’S GOAL OF GENERATING INCOME FOR THESE POPULATIONS.

iNNPULSA MIPYME

INNPULSA MIPYME IS A NON-REFUNDABLE CO-FINANCING RESOURCE FUND THAT SUPPORTS PROGRAMS, PROJECTS AND ACTIVITIES ORIENTED TOWARDS INNOVATION AND ENTREPRENEURIAL DEVELOPMENT SERVICES IN MSMES (MICRO, SMALL AND MEDIUM SIZED ENTERPRISES), KNOWN AS MIPYMES IN SPANISH. THESE

SERVICES INCLUDE PRODUCTION CHAIN DEVELOPMENT,

PRODUCTS, SERVICES OR APPS FOR MSMES.

ACHIEVEMENTS

PRODUCTIVE TRANSFORMATION PROGRAM (PTP)

ARTICLE 50 OF THE 2010-2014 NATIONAL DEVELOPMENT PLAN ESTABLISHED THAT THE PRODUCTIVE TRANSFORMATION PROGRAM ORIGINALLY CREATED BY THE MINISTRY OF COMMERCE, INDUSTRY AND TRADE IN 2008 SHOULD BE MANAGED BY BANCOLDEX.

IN SEPTEMBER 2011 BANCOLDEX AND THE MINISTRY OF COMMERCE, INDUSTRY AND TOURISM SIGNED AGREEMENT NO. 187 OF 2011 TO CREATE THE INSTITUTIONAL FRAMEWORK THAT MANAGES THE PROGRAM.

THE STRATEGIC OBJECTIVE OF THE PRODUCTIVE TRANSFORMATION PROGRAM (PTP) IS TO PROMOTEPRODUCTIVITY AND COMPETITIVENESS OF SECTORS THAT HAVE AN ELEVATED EXPORT POTENTIAL, SERVING AS AN INSTRUMENT THAT PROMOTES THE BETTER USE OF FREE TRADE AGREEMENTS.


NEW

ACHIEVEMENTS ACHIEVEMENTS

•

•

BANK OF OPPORTUNITIES


IIN THE AREA OF EMPLOYMENT GROWTH IN THE FIRSTSEMESTER OF 2014, THE THIRTEEN (13) MAIN METROPOLITANAREAS OF COLOMBIA IN THE SECTORS SUPPORTED BY THE PTP SAW 1,385,664 JOBS CREATED. THE SECTORS WITH HIGHEST EMPLOYMENT PERCENTAGES WERE THE AGRICULTURAL SECTOR WITH 28.7% IN PALM, OILS AND VEGETABLE FAT SECTORS. IN THE MANUFACTURING SECTORS, IT IS IMPORTANT TO MENTION THE INCREASE OF 5.8% OF WORKERS IN THE METAL-MECHANIC AND LEATHER PRODUCTION SECTORS. THE MAIN GROWTH IN THE SERVICE SECTOR WAS IN SOFTWARE AND IT (9.4%), AND ELECTRICITY (30.2%).

IN 2014, THE PTP ACTIVELY PARTICIPATED IN THECONSTRUCTION OF THE RELEVANT MASTER PRICEAGREEMENT (AMP FOR ITS ACRONYM IN SPANISH) IN EACH SECTOR, WITH THE OBJECTIVE OF ENCOURAGING THE PARTICIPATION OF NATIONAL ENTERPRISES. THE SPECIFIC ACHIEVEMENTS INCLUDED THE CREATION OF THE AUTOMOTIVE SECTOR AMP FOR THE PROMOTION OF THE AUTOMOTIVE INDUSTRY THROUGH AN ENDOWMENT AMP.

DURING 2014, THE PTP PARTICIPATED IN THE CONSTRUCTIONAND ARTICULATION OF PROPOSALS TO OVERCOME BARRIERSAND OPPORTUNITIES THAT IMPACT THE PRODUCTIVITY ANDCOMPETITIVENESS OF PTP SECTORS.

• THE NATIONAL BANKING LEVEL, MEASURED AS THENUMBER OF ADULTS HAVING ACCESS TO A FINANCIALPRODUCT, WAS 72.6% IN SEPTEMBER 2014. THIS REPRESENTS A 3.3% INCREASE COMPARED TO 69.3% DURING THE SAME PERIOD IN 2013. THIS FIGURE SHOWS THAT THE GOVERNMENT’S GOAL ESTABLISHED IN THE NATIONAL DEVELOPMENT PLANTO ACHIEVE A BANKING LEVEL OF 68% WAS EXCEEDED.

• IN JULY 2014 THE THIRD REPORT ON FINANCIAL INCLUSION WAS DELIVERED WITH PARTICIPATION FROM THE BANK OF OPPORTUNITIES AND THE FINANCIAL SUPERINTENDENT OF COLOMBIA. THIS REPORT PRESENTS A SUMMARY AND ANALYSIS OF FINANCIAL INCLUSION INDICATORS IN COLOMBIA.

• BANK BRANCHES HAVE HAD A POSITIVE PERFORMANCE DURING THE LAST FEW YEARS. AS OF NOVEMBER, 2014, THERE WERE 87,887 BANK BRANCHES (BBS). COMPARED TO THE NUMBER OF BRANCHES THAT WERE OPEN IN NOVEMBER 2013, 41,538 NEW BBS WERE OPENED DURING THE YEAR, REPRESENTING A 104% INCREASE. THE NEW BBS WERE OPENED BY 23 FINANCIAL ENTITIES IN 1,099 MUNICIPALITIES OF COLOMBIA. THROUGH THESE NEW BRANCHES MORE THAN 43 MILLION BANKING TRANSACTIONS WERE CONDUCTED WITH A TOTAL VALUE OF COP $15.8 TRILLION.

• IN TERMS OF THE TOTAL CREDIT PROVIDED TO MICRO-ENTREPRENEURS THROUGH THE BANK OF OPPORTUNITIES, AS OF NOVEMBER 2014 A TOTAL OF 2,278,089 MICROCREDITS HAD BEEN PROVIDED TOTALING COP $7.7 TRILLION.

• THE TECHNICAL ASSISTANCE PROGRAM FOR COOPERATIVES,THAT SUPPORTS THE DESIGN AND IMPLEMENTATION OF SAVING AND CREDIT PRODUCTS PROVIDED BY THE BANK OF OPPORTUNITIES INITIALLY BEGAN WITH TWELVE (12)COOPERATIVES. THIS BENEFITTED A TOTAL OF MORE THAN124,000 PEOPLE WHO HAD ACCESS TO THE FORMALFINANCIAL SYSTEM FOR THE FIRST TIME.

THE “BANK OF OPPORTUNITIES INVESTMENT PROGRAM” (PIBO FOR ITS ACRONYM IN SPANISH) WAS CREATED BY DECREE 3078 DATED SEPTEMBER 8, 2006, INCORPORATED INTO DECREE NO. 2555 OF 2010. THE OBJECTIVE OF THE PROGRAM IS TO IMPROVE THE LEVEL OF FINANCIAL AND BANKING INCLUSION, AS WELL AS EXTENDING COVERAGE TO ALL MUNICIPALITIES WITH ADEQUATE FINANCIAL PRODUCTS AND SERVICES AVAILABLE FOR ALL COLOMBIAN POPULATION SEGMENTS.

• IN 2014, THE PTP PROVIDED DIRECT SUPPORT TO MORE THAN 140 PTP COMPANIES TO INCREASE PRODUCTIVITY AND COMPETITIVENESS THROUGH THE FOLLOWING

PILOT PRODUCTIVITY PROGRAM (PPP)

PILOT MARKETING PROGRAM

STRENGTHENING OF SUPPLY CHAINS

SPECIALIZED TRAINING

PROGRAMS:

OUR BANKFINANCIAL RESULTS

TOTAL LOAN PORTFOLIO (COP MILLION)

USD

6.000.000

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

0

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000500.000

1.500.000

2.500.000

3.500.000

4.500.000

0

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014

LOCAL CURRENCY LOAN PORTFOLIO (COP MILLION)

FOREIGN CURRENCY LOAN PORTFOLIO (USD MILLION)1000

800

600

400

200

0

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014 COP

TOTAL LOAN PORTFOLIO BY CURRENCY

LOAN PORTAFOLIO IN COP

100%

80%

60%

40%

20%

0%

LOAN PORTAFOLIO IN USD

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014


1.400.000

1.000.000

600.000

400.000

800.000

1.200.000

1.600.000

200.000

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014

EQUITY (COP MILLION)

FINANCIAL RESULTS

ASSETS (COP MILLION)

7.000.000

6.000.000

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014

NET INCOME (COP MILLION)

120.000

100.000

80.000

60.000

40.000

20.000

-

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014

LIABILITIES (COP MILLION)

6.000.000

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

2004 2005 2006 2007 2009 20102008 2011 2012 2013 2014


LOAN DISTRIBUTIONOUR BANK

LOAN PORTFOLIO COMPOSITION BY TERM

MORE THAN 4 YEARS 41%

UP TO 1 YEAR 25%

UP TO 2 YEARS 8%

UP TO 3 YEARS 19%

UP TO 4 YEARS 6%

MANUFACTURING INDUSTRIES 31%

FINANCIAL AND INSURANCE ACTIVITIES 27%

WHOLESALE, RETAIL AND VEHICLE REPAIR

16%

TRANSPORT AND STORAGE 9%

OTHERS 8%

PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES 3%

CONSTRUCTION 2%

REAL ESTATE ACTIVITIES 2%

HEALTH AND SOCIAL ASSISTANCE

2%

TOTAL LOAN PORTAFOLIO

(COP MILLION) (COP MILLION) (COP MILLION)

TOTAL LOAN PORTAFOLIO TOTAL LOAN PORTAFOLIO

LOAN PORTFOLIO COMPOSITION BY SECTORLOAN PORTFOLIO COMPOSITION BY TYPE OF INSTITUTION

NGO´S 5%

CREDIT UNIONS 2%

FOREIGN BANKS 17%

FINACE COMPANIES 23%

COMMERCIAL BANKS 51%

FINANCIAL CREDITS UNION 0%

DIRECT 1%

TOP GRADE AGENCIES 1%


REPORT FROM THE BOARD OF DIRECTORS AND THE PRESIDENT TO THE 2014 GENERAL SHAREHOLDERS ASSEMBLY

ANNUAL REPORT

INTRODUCTION

A complex and uncertain international situation set the pace of growth for advanced and emerging economies in 2014. In this context, the Colombian economy stood out due to its dynamism and sustainability, which were reflected in the rate of expansion of the GDP, which was one of the highest in the region. This performance was leveraged by the behavior of the construction sector and the recovery of the manufacturing industry after the previous year’s contraction. In the meantime, the demand for resources required by the Colombian economy was supported by the financial system, with a favorable performance of credit. During the year credit maintained two-digit rates, with an average of 14.4%.

The strong nature of the credit dynamic was reflected in the excellent behavior of disbursements, which reached COP $4.65 trillion, representing the highest annual amount of disbursements in the entire bank’s history and exceeded the amount financed during the previous year (COP 3.85 trillion) by more than 20%. With more than 130,000 financed enterprises, especially SMEs, the Bank maintained its philosophy of providing services to companies of all sizes, striving to generate integrated solutions that promote growth, based on the needs of each segment and achieving the third greatest regional coverage in its history. This involved the disbursing of credits to entrepreneurs in 767 municipalities of Colombia, with a presence in all of the country’s departments. In addition, the Bank disbursed COP $1.46 trillion for the modernization of productive apparatus and COP $1.32 trillion allocated to support the Colombian economy’s internationalization.

In 2014, Bancoldex made an important effort to re-define its new corporate strategy so that it could offer a bold value proposition, with unique selections and a clear focus that will generate a greater impact on entrepreneurial growth in the country.

As part of these efforts, the Bank hired a team of consultants with strategic expertise so that they could design the entity’s corporate strategy alongside the Bank’s managerial team, taking into consideration the synergies that could be generated between Bancoldex, its affiliates and the special programs it manages.

Taking this into consideration, in June 2014 Bancoldex initiated a transformation process in which it was decided that its new corporate strategy would focus on entrepreneurial growth, allowing the Bank to become an entity much more involved with entrepreneurs and achieve greater relevance for the country.

To move in this direction, the Bank identified the most important growth levers that have allowed companies to show positive results during the last decade. Based on these findings, the Bank defined its new corporate strategy with participation from al of its programs in order to play a more relevant role as a government entity and to decisively promote entrepreneurial growth.

Subsequently, Bancoldex’s challenge in 2015 will be to begin the implementation of its new strategy, strengthening internal capabilities, increasing profits and contributing to the promotion and growth of enterprises in Colombia of all sizes and from all sectors.

In 2014 the participation of Bancoldex, along with MCIT, in the process of obtaining access to the OECD Export Credits Committee, resulted in the Credit Work Group for OECD Exports giving a formal, positive opinion of Colombia, without any concerns or reserves. It is important to note that this is the first clearance received by the country in the entire OECD Access process.

This report is a comprehensive summary of the Bank’s actions and management during 2014 and incudes the main achievements of the year, progress made in the definition of the Bank’s new strategy, policy mandates, risk management aspects, quality management, the internal control system, the Bank’s legal situation, corporate governance, transactions with parties related to equity, staff, intellectual property and copyright, among others.

ECONOMIC BEHAVIOR IN 2014

The trend observed during the previous year of the moderate expansion of the global economy’s rhythm continued in 2014. Although at the beginning of the year there were better expectations regarding growth, especially for developed countries, these deteriorated, as well as the positive outlook for emerging economies. In the United States, the evolution of the labor market was not overly positive, with an unemployment rate of 5.6% in December, while the slower growth rhythm of the Chinese economy, the risks of deflation in the Euro Zone and the low GDP growth rate in Japan generated concern among investors.

Due to the difference in economic growth rates, the main central banks of the world (FED, ECB, BoE, BoJ) adopted different monetary policy positions. For instance, in the United States of America, the FED ended its Quantitative Easing Program, while in Europe and Japan measures to promote economic activity were implemented. This involved a decrease in interest rates by the ECB to the lowest rates in history and the BoJ implementing an expansive monetary policy focused on doubling the monetary baseline and working to reduce inflation to 2% .

This global situation, added to the lower dynamism of China and emerging economies such as Russia and Brazil, combined with a decrease in price of several commodities, generated an increase in the volatility of financial markets, especially the currency market.

Although in general terms it is expected that there will be an increase in the growth of advanced economies in 2015, the performance in 2014 suggests that there is cause for moderate optimism. This is emphasized by the divergence in policies of the main central banks, with the announcement of an incentive program by the ECB and the expectation that the FED and the BoE will start to gradually increase interest rates. On the other hand, in spite of the lower prices for commodities, in particular the price of oil, there will be a benefit with a decrease in cost for certain supplies and gasoline. Among other factors, this will have a negative impact on the income of producing countries (mainly the emerging countries).

In Colombia, between January and September, the GDP increased 5.0% compared 4.4% for the same period in the previous year. Construction was the leading sector, with a growth rate of 13.7%; the contribution from social, community and personal sectors was important, as were trade and financial services. On the other hand, production in the manufacturing industry had a variation of 0.5%, a figure that reflected a recovery from -1,3% in the same period in the previous year. In terms of demand, a greater dynamism was observed in consumption of households and the government, with variations of 5.1% and 6.7% respectively, while the gross capital formation increased by 15%. Performance of economic activity also reflected the evolution of the labor market. Between January and November the average monthly unemployment rate was 9.2%, a figure that was lower compared to the previous year. As a result of this, an approximate growth rate of 4.8% is expected in 2014.

In terms of foreign trade, total exports between January and November registered an annual decrease of -4.7%, with a total of USD $51,060 million.

This included variations of -5.2% and -6.3% for oil and manufacturing respectively. This, added to the growth of 7.6% of imports which reached USD $55,868, million resulted in a commercial deficit of USD $4,807 million, a result that differs from the surplus of USD $1,645 million observed during the same period in 2013.

In December, 2014, annual inflation was at 3.66%, falling within the target range set by the Bank of the Republic , as a result of increases in the prices of food and housing. As a consequence of the acceleration of the growth rate for internal demand and the increase in the inflation expectations for the end of the year, in April the Bank of the Republic initiated a series of increases in the Intervention Rate (125 basic points) up to 4.50% in August. This level was maintained until the end of the year. Although between the second and third quarters there were gradual increases in deposits and lending rates, the annual average per reference was similar to the previous year.

In 2014 the Colombian peso (COP) depreciated against the U.S. dollar (USD), with the average TRM (Market Representative Rate) increasing from COP $1,869 to COP $2,001, with a variation of 7.1%. In general, the Colombian peso appreciated during the first semester, while in the second semester, as a result of deviation in the monetary policy of the main central banks and the oil price drop, along with a greater risk aversion in global markets, the COP devaluated and closed the year at COP $2,392.46 to the US Dollar. When comparing year-end figures, the Representative Market Rate showed a variation of 24.2%.

Economic activity performance, added to the greater soundness of public finance, were the determining factors that made Moody’s elevate the sovereign credit rating of Colombia from “BAA3” to “BAA2” in July 2014.

The growth perspective for the Colombian economy in 2015 has been adjusted according to external factors, with a rate of 4.2% at the time this report was written. The construction sector, promoted by the infrastructure investment program (4G), will be one of the sectors that makes a significant contribution

to the increase of the GDP, while it is expected that there will be less dynamic export with a negative impact on fiscal income due to lower oil prices.

FINANCIAL SECTOR

Notwithstanding the fact that the international arena was affected by complex economic factors that impacted financial markets, credit entities in Colombia registered positive behavior during the year thanks to solid equity and the good performance of the local economy. In 2014, the Colombian financial system continued to increase credit placements, mainly caused by commercial portfolios and consumption. Additionally, it is important to highlight the equity strengthening of some institutions, the adequate liquidity position of the system and the controlled level of past-due portfolio with low risk level quality indicators. The investment portfolio demonstrated a growth trend and generated a higher income than the previous year, supported by the yield from fixed income securities. Investment portfolios registered growth, generating more income than the previous year, supported by the yield of fixed income securities. On the other hand, the growth and positioning of certain national financial groups in other countries continued, as well as increased participation of foreign banks in Colombia. A positive aspect is the important progress made in terms of financial inclusion. At the same time, the regulation and monitoring of the system continued to be strengthened, particularly due to progress and demands in terms of credit risk and liquidity. In 2014, the dynamics of credit were positive, with growth rates similar to those of 2013. As of November, 2014, the balance in the portfolio of credit entities was COP $319.8 trillion, with an annual growth rate of 14.5% . In terms of credit categories, the housing portfolio continued registering the best performance, supported by good interest rate conditions, although the growth rhythm decreased compared to the previous year. Similarly, the consumption and commercial portfolios registered a positive performance with growth rates comparable to 2013. The microcredit portfolio showed a decrease in its

growth rate.

In general, the evolution of portfolios was accompanied by good credit quality. In November, 2014, the past-due portfolio represented 3.1% of the total portfolio and the level of provisions was at 143.6%, similar levels to 2013. The low default levels of the housing and commercial portfolios were noticeable, although the latter registered a slight deterioration in the last few months. The consumption portfolio maintained an adequate and stable default indicator. In contrast, the microcredit portfolio registered a decline compared to December 2013.

Investments demonstrated growth and continued with important asset participation (18.1%), even though this was lower than the figure for December, 2013 (19.6%). In 2014 the TES fixed income markets had a good performance and compensated the poor results of the variable income markets. Within investments, the public debt securities had a share of 60% and valuations were 4% of the financial income .

The capitalization level continued being one of the strengths of financial sector entities. As of November 2014 the solvency indicator of the sector was 15.8%, higher than the previous year’s indicator and at a level much higher than the minimum required (9%). It is important to note the increase in capital plus reserves (16% annual) because several entities adopted the capitalization of a large part of the profit earned in 2013 as policy and made additional capital injections.

In general the profitability indicators remained at adequate levels. The financial margin improved vs. the previous year, mainly as a result of a better cost structure. In terms of equity profitability, indicators decreased because the profit growth rate was less than the equity growth rate. Consequently, as of November 2014, credit entities accrued a COP $7.4 trillion profit, higher than the corresponding figure for the same month in 2013 (COP $6.9 trillion).

It is expected that credit will continue to have a positive dynamic in 2015, although it will be lower than the 2014 figures. This will combine with the lower economic growth expected at a local level as a result of uncertainties related to the price of oil, the global economic crisis, reduced foreign investment and the impact in the entrepreneurial sector of recent tax reforms, among other aspects. On the other hand, it is expected that the liquidity of the system will maintain adequate levels, although lower than the current ones. The asset situation continues to be strengthened while portfolio quality will decline but will continue with low risk levels. In regards to profitability, it is predicted that margins will continue at adequate levels, although they could be lower than those of last year. These were affected by increased requirements of provisions due to a growing trend of past-due portfolios and lower portfolio yields caused by a higher volatility of financial markets, a result of adjustments to US monetary policy. In addition, in 2015 entities started to make financial statement reports according to IFRS standards, a situation that for some entities could result in important changes to determined figures.

2014 MANAGEMENT AND ACHIEVEMENTS

The Bank’s management in 2014 focused on the following areas:

• As a Bank for development, the Bank examined financing to modernize productive apparatus, emphasizing support to reduce the environmental impact of companies. • In its role as a promoter of foreign trade, the Bank supported internationalization of economies with an emphasis on the diversification of markets and the better use of opportunities generated by FTAs.

• One of the main action tools of the national government was to address the country’s short-term needs during the year, mainly as part of the Plan for the

Promotion of Productivity and Employment. These actions contributed to the recovery of industrial activity and supported regions affected by internal and international consumption difficulties, such as Norte de Santander, Nariño, Caquetá and San Andrés.

In the same manner, the Bank contributed to the development of government agendas to comply with the National Development Plan, especially in the special programs managed by the Bank.

Finally, the Bank focused on defining a new corporate strategy over the next few years and analyzing the challenges that the Bank will face in order to implement such a strategy.

Below are further details on the progress made and achievements in each of these areas:

BANCOLDEX AS A BANK FOR ENTREPRENEURIAL AND FOREIGN TRADE DEVELOPMENT

With a total of COP $4.65 trillion, 2014 was the year with the highest amount of disbursements in the history of Bancoldex, exceeding by more than 20% the financing provided in 2013 (COP $3.85 trillion). On the other hand, with more than 130,000 financed companies, mainly micro enterprises and SMEs, the Bank maintained its philosophy of working with all sizes of companies to generate integrated solutions for the promotion of growth, based on the needs of each segment.

In this manner, Bancoldex complied with its strategic mid and long-term objectives, which can be summarized as follows:

ENTREPRENEURIAL MODERNIZATION: COP $1.46 trillion in financing the modernization of production capacity, fulfilling the budgetary goal by 125%.

MID AND LONG TERM FINANCING: COP $2.46 trillion, or 53% of total disbursements, were financed with terms of more than one year, achieving the

proposed term transformation goal, especially in the modernization of micro enterprises and SMEs.

MICRO, SMALL AND MEDIUM-SIZED COMPANY APPROACH: COP $1.98 trillion was provided to companies in this sector, fulfilling 86% of the budgetary goal. SUPPORT TO INTERNATIONALIZATION OF THE ECONOMY: Foreign trade for this year represented COP $1.32 trillion including exporting companies, purchasers of Colombian products abroad and to finance trade operations.

REGIONAL COVERAGE: The Bank achieved the third highest regional coverage in history, disbursing credits to entrepreneurs in 767 municipalities of Colombia, covering all departments.

The Bank’s highest ever amount of disbursements, COP $4.65 trillion, was provided to more than 131,000 companies in the country. This contributed to growth in different areas: COP $1.47 trillion supported production upgrades for more than 29,000 companies, through investment in production machinery and equipment, warehouses, premises and vehicles. An amount of COP $1.32 trillion pesos financed 812 exporters that achieved exports valued at more than USD $12,000 million in 2014. COP $1.35 trillion was disbursed for sustainability and recovery of the industrial sector, financing more than 22,000 companies.

Consequently, there were important advances made in terms of the transformation of different economic sectors. The transportation sector had an average term of more than six years per credit. Likewise, the health sector had five years and education, professional services and accommodation had average terms of more than four years.

The Bank’s management actions were focused on the following areas in order to comply with these objectives:

CONSOLIDATION OF PRODUCTS

1. CREDIT LINES AND SPECIAL QUOTA

• During the first months of 2014, the special credit lines of the PIPE program for the industrial sector remained in effect, disbursing COP $909,574 million to more than 6,600 industries. • During the year, 36 credit lines were approved for national, departmental and municipal governments, and other entities had their credit lines opened or renewed, with the objective of fundamentally supporting the micro, small and medium-sized enterprises in the different regions of Colombia. This resulted in a disbursement totaling COP $211,700 million to more than 8,000 companies. • In September a financing program was launched to modernize micro, small and medium-sized enterprises. This program included general lines of credit aimed at all types of investments and specific lines oriented towards supporting sustainable development. This portfolio generated a disbursement of COP $441,872 million.

• In the environmental area, Bancoldex worked to broaden the energy efficiency line of credit to promote the use of renewable energy resources.

2.. STRENGTHENING THE BANK’S PRESENCE AT A REGIONAL LEVEL

Apart from maintaining strategic alliances with guilds, chambers of commerce and universities, the Bank improved its service in the regions. Within the program developed by the Ministry of Commerce, Industry and Tourism (MinCitio), Customer Service Centers were opened in partnership with other entities in the cities of Ibagué, Neiva, Manizales, Pasto and San Andrés along with other MinCitio centers.

Regional representation and joint actions with the Ministry facilitated the

coordination of activities for the dissemination of product portfolio, training, participation in fairs and consultancies for affiliates.

3. SERVE AS A TOOL TO SUPPORT SECTORS WITH SPECIFIC PROBLEMS

Partnerships with the national government and the Ministry of Commerce, Industry and Tourism were maintained and strengthened in 2014 to offer lines of credit that addressed specific problems, including: recovery of economic activity in the industrial sector; strengthening of the offer for the modernization of companies; and specific support lines to regions that have been economically affected, such as Norte de Santander, Caquetá, Nariño and San Andrés.

4. STRENGTHENING OF FINANCIAL RESOURCES DISTRIBUTION NETWORK

In 2014, Bancoldex enrolled 7 new entities as financial intermediaries with credit quota that are focused on providing micro-entrepreneurial credit. The network, formed by allied financial entities, allowed Bancoldex to provide coverage to all the Departments of Colombia during the year, with operations in 767 municipalities.

Additionally, Bancoldex offered training and updates for existing intermediaries, as well as the new ones. This process focused on the promotion of the usage of new service lines for work capital and modernization. This included updating and promotion campaigns with financial entities that supported the offices from the most affected regions, as a supplement to business generation campaigns for enterprises.

5. SUPPORT THE ACQUISITION OF COLOMBIAN GOODS AND SERVICES

Bancoldex, through continuous management with more than 52 active financial intermediaries and correspondents abroad, focused on promoting the purchase of Colombian goods and services, mainly in those countries that have

historically engaged in trade with Colombia where client diversification opportunities are available. Bancoldex promoted the use of instruments such as purchasing credit, post-shipment vendors, document discounts, Liquidex dollars and international banking operation services to support Colombian foreign trade.

In 2014, disbursements of USD $569 million for foreign funding were made, including international banking operation businesses (OBI for its acronym in Spanish) for USD $197 million. These disbursements were made in countries such as Ecuador, Panama, El Salvador, Brazil, Costa Rica, Dominican Republic, Honduras, Peru, Puerto Rico, Haiti, Mexico, Guatemala, United States of America, Bolivia and Chile.

6. PROMOTE ENTREPRENEURIAL STRENGTHENING BY OFFERING TRAINING PROGRAMS FOR ENTREPRENEURS

In 2014, the Bank continued to develop on-site and virtual training programs, publications and entrepreneurial support activities in order to strengthen the managerial skills of Colombian entrepreneurs. These activities were implemented in partnership with academia, guilds, associations, chambers of commerce, Procolombia and some public sector entities, benefitting 7,500 entrepreneurs in thirty-nine (39) cities.

The main topics covered were: financial management in foreign trade, NIIF (Spanish acronym for International Financial Reporting Standards), cash flow, corporate governance, board of directors, upper management, innovation, environmental management and human resource management, among others.

Coverage was extended through virtual activities: in “Bancoldex Virtual Campus”, developing twelve (12) virtual courses on “Tools and Keys to Access Credit” and “Marketing Strategies to Improve Sales”, which benefitted 912 entrepreneurs from 55 cities and municipalities.

Using 27 videoconferences on managerial topics, 2,283 people from 112 cities and municipalities received training in these topics.

At the end of 2014, Bancoldex led the “3 E’s – Exporting, Excellence and Enterprise” program, developed by CAF, which strengthens partnerships between the private and public sectors and academia. This program has the objective of leveraging business models for companies exporting non-traditional goods and services, delivering tools that allow entrepreneurs to constantly evaluate, improve and innovate their exporting business model.

7. ENVIRONMENTAL MANAGEMENT

The environmental strategy of Bancoldex focuses on green products and in 2014 the entrepreneurial sector was financed with COP $37 billion. In addition, Bancoldex included in two (2) special programs in its product portfolio: 1) Sustainable Development; and 2) Energy Efficiency and Renewable Energy. This was the result of a re-design of the “Bancoldex Sustainable Development and Renewable Energy” program, with all of the previous program’s resources allocated to the two new programs.

Work that began during the previous year continued in 2014, structuring the energy efficiency line through sub-sectors that included clinics, hospitals and hotels. Achievements in this area were: a) expansion of market analysis of business models currently operated by energy services companies at national and international levels; b) socialization of the program with stakeholders, with a special emphasis on final customers, energy companies and associations; and c) validation and adjustment of non-financial mechanisms included in the program.

In regards to analysis of environmental and social risks, the environmental and social risk management model was validated with operations exceeding USD $5 million funded by Bancoldex. The training program for financial intermediaries continued in the areas of environmental and social risk

management and the operation of the Bancoldex model. These actions helped generate the necessary capabilities so that financial entities are able to structure their own socio-environmental risk management model.

Within the compliance with sustainability initiatives area, specifically with the Green Protocol, Bancoldex actively participated in the work teams developed by Asobancaria. The protocol framework included three (3) areas: a) sustainable purchases, b) tax incentives for environmental investments, and c) environmental risks associated with waste management. Training workshops for risk and commercial areas were developed that took into account the energy efficiency potential of Colombia, eco-efficiency, water resources, biodiversity and carbon footprints, building on the recommendations from the 2013 Bank Sustainability Report.

8. SUPPORT TO COMPANY CAPITALIZATION

FINANCIAL SUPPORT

Bancoldex Capital, the investment program providing private capital funds, continued in 2014. Two (2) capital funds evaluations were completed during the year and ten (10) other funds were evaluated. The Investment Committee approved investment commitments for USD $3 million and USD $2 million for two new entrepreneurial capital funds focused on technology and innovation .

With the current investments from Bancoldex in private and entrepreneurial capital funds, the Bank has mobilized resources from third parties, through USD $389.69 million in capital funds in 39 companies; in other words, 10.6 times the value committed by the entity. From this amount, USD $186.32 million has been used to fund 28 Colombian enterprises, which means that for each Colombian peso committed by Bancoldex in capital funds, the resources have a 5-fold increase for the capitalization of companies in different growth stages in Colombia.

The funds in which Bancoldex has investment commitments have providing funding to companies from different sectors, such as outsourcing services, information technologies, bio-technology, commerce, waste treatment, digital animation, tourism, energy generation, infrastructure and logistics, etc.

NON-FINANCIAL SUPPORT TO THE CAPITAL FUNDS INDUSTRY

In the framework of the implementation of the Non-Reimbursable Technical Cooperation Agreement signed with FOMIN (Multilateral Investment Fund of the Inter-American Development Bank), Bancoldex launched the Latin American Private Equity and Venture Capital Association, with local and foreign participants. An investment meeting called “Venture Forum” had participation from 143 attendees including local and foreign companies, entrepreneurs and investors (20 companies were trained and 446 one-to-one connections between entrepreneurs and investors were achieved).

Additionally, support for the Colombian Association of Capital Funds, COLCAPITAL, continued through the creation of a capital fund educational handbook for entrepreneurs. The fifth edition of the capital funds catalogue in Spanish and English was published. This catalogue includes information on capital funds currently operating in Colombia and those in the fundraising phase, as well as general industry information. There was also active participation in national and international events to promote Colombian industry and attract new investors.

Finally, to connect Colombian entrepreneurs and the private capital industry, presentations were made in different cities, developing contacts with universities, insurance companies, etc. in order to attract new investors to the industry.

9. TECHNOLOGICAL MODERNIZATION PROJECT - ORION

In 2014, the Orion Technological Modernization Project carried out activities to migrate to T24 and use the last modules of the third and last phase of the

Project in production. Due to the number and complexity of regulation changes for the management of funds in the financial sector, an in-depth analysis of the possibility of migrating of the treasury modules to the new Banking Core was conducted. The conclusions of the study will be evaluated jointly with Temenos.

2014 was a year of great intensity in software testing. The second and last cycle of acceptance tests for securities and fixed term deposit certificate products was carried out, achieving 70% progress in the implementation of these tests with satisfactory results.

The first cycle of acceptance tests for the accounting module was finished in 2014 and the second and last cycle began. In addition, the module integrated tests for the control of asset laundering and terrorism financing (AML) began and the standard version of the Data Warehouse (T-Insight) was received.

The ORION Project will end in 2015.

10. INTERNATIONAL COOPERATION AND RELATIONS

The Bank’s international cooperation and relations in 2014 focused on the management of technical resources and knowledge, which contributed to the design of the corporate strategy. In this sense, priority was given to actions such as receiving recommendations from experts participating in the Korean Cooperation Project and to develop first-hand information on non-financial support models for SMEs. The first session of Bancoldex’s International Consulting Committee was held, bringing together experts from relevant areas with staff from the Bank. This committee reviewed the proposed strategy from an international point of view. Furthermore, this strategic exercise enjoyed financial and technical support from multilateral entities. Considering the challenges represented by the future strategy, new possibilities were analyzed with entities such as IFC, CII and CAF as potential partners in facing some of these challenges.

As part of the articulated actions with the special programs, resources from the UK Newton Fund were managed to work with British entities in leveraging extraordinary growth and support from the finance industry at an early stage. Along with a consortium of public and private entities in Europe and Latin America, a project approved by the European Union was presented for the creation of an international network that supports entrepreneurial innovation. Cooperation on methodologies for strengthening the cluster was received from Germany’s Ministry of Education and Research. Escalation of the 3E’s Program was formalized with CAF, in order to leverage the development of export excellence enterprises, among other initiatives.

Bancoldex supported the process of complying with OECD guidelines through the Export Credit Committee, which in November formally issued its positive opinion of access by Colombia to this international organism, without any type of reserves.

11. HUMAN TALENT AND WELLBEING MANAGEMENT

Human talent management in 2014 focused on the performance and implementation of the “Our People” management tool, which includes the modules of Selection, Contracting, Performance Evaluation and Competencies, Training, Career Paths, Compensation and Benefits. Analysis, tests and implementation of employee information, personnel selection, absence management, and case management modules were completed, obtaining the expected results. The previously mentioned modules will be used in 2015, as well as the modules to evaluate performance and competencies, training, compensation and benefits.

In 2014, programs on training, wellbeing, and occupational health were developed that included a global perspective.

12. INNOVATION MANAGEMENT

BANCOLDEX INNOVATION WEEKThe Innovation department of the Bank focused on the development and implementation of projects in the Bancoldex innovation system in 2014, as well as open innovation exercises, receiving public acknowledgement and increasing participation by the organization with a more mature system that has served as reference for different organizations and companies. This work translated into the following acknowledgements: FELABAN 2014, third place innovation award in the financial system with the project “Agility in Microentrepreneuial Credit”; honorable mention in the national award for upper management with the project “Agility in Microentrepreneuial Credit”; and with the participation of 208 in-house staff and 214 external participants in the “Bancoldex Challenge”, “Week Challenge”, lectures and workshops during Innovation Week.

COLOMBIA CO4 COLLABORATIVE INNOVATION PROGRAMActivity undertaken to propose challenges for the Colombia CO4 Collaborative Innovation Program led by iNNpulsa. Bancoldex participated with two (2) challenges.

This system expanded and consolidated in 2014, with broad participation from Bank staff that have more and more space and opportunities to propose creative and innovative ideas and initiatives. A reflection of this is that the following projects were developed during 2014: Agility in Micro-entrepreneurial Credit, electronic banking chat, Bancoldex App, Bancoldex Lectures, Entrepreneurs Club and the innovation platform.

BANCOLDEX AS MANAGER OF SPECIAL PROGRAMS

DEVELOPMENT AND INNOVATION UNIT - INNPULSA COLOMBIA

The national government believes in extraordinary entrepreneurial growth facilitated by iNNpulsa Colombia

For this reason, the government of Colombia has been working for almost three (3) years on entrepreneurship and innovation through iNNpulsa Colombia.

iNNpulsa Colombia exists to promote extraordinary entrepreneurial growth, leveraged by innovation, providing more tools to hard working and innovative entrepreneurs so that they can innovate and grow. This is done through three (3) areas:

• Promote a change in mind-sets to overcome barriers that restrict more cases of extraordinary entrepreneurial growth.

• Correction of market faults: We inject resources where needed, connecting and activating supply and demand. • Strengthening of stakeholders in the regions so that they can promote extraordinary growth.

INNPULSA COLOMBIA 2014 ACHIEVEMENTS

The best way to detail the achievements made by iNNpulsa Colombia is to examine what has happened in Colombia since this institution was established almost three (3) years ago.

In terms of mind-sets and culture - iNNpulsa Colombia contributed to promoting changes in mind-sets and culture, enabling companies to grow in a rapid and sustained manner.

• iNNpulsa Colombia has activated national and regional dialogue on innovation and dynamic entrepreneurship, which is evident with the more than 9,000

participants in events such as Heroes Fest, Global Entrepreneurial Week and the Extraordinary Entrepreneurs Tour, among others.

• iNNpulsa Colombia has had a positive impact on entrepreneurial culture through inspiring stories that are disseminated through its Colombia iNN news agency. To date this agency has more than 1,800 publications in national and international media and is responsible for producing the “Dinámicos” supplement, which is distributed throughout Colombia reaching an audience of more than 250,000.

• iNNpulsa Colombia connects Colombians with their countrymen and women and people from around the world in order to share knowledge and regional, national and international experiences.

iNNpulsa Colombia corrected market faults: Injecting resources where needed, connecting and activating supply and demand. This included providing direct services to companies so that they can have the best tools to grow.

• The creation of three (3) investment funds was financed (Velum, Nazca and Social Atom) in 2013, out of which in 2014 Velum was still operating. These funds had an initial closure of COP $22 billion and making eight (8) investments to date for a total of COP $5.8 billion.

• iNNpulsa Colombia has directly contributed capital to the early stages of more than sixty (60) enterprises through co-financing. These instruments are implemented in partnership with other entities, such as the Ministry of Culture.

• In order to attract credit resources to finance company growth during the initial stages, a pilot program on Financial Readiness and Banking Awareness was implemented in two (2) cities (Barranquilla and Cali), in which more than 150 enterprises participated in workshops and received personalized consultancies. Along with Bancoldex iNNpulsa helped to structure more than

COP $145 billion of leveraging for the Credit Lines for Innovation and Entrepreneurial Growth this company segment.

• iNNpulsa Colombia has constructed a database of approximately one thousand (1,000) companies and individuals across the entire country that are developing entrepreneurial projects. Based on this data, the best startups were selected for the elaboration of a portfolio of companies in early stages, with the purpose of attracting investment to Colombia. For example, Click Delivery is one of the companies that forms part of the portfolio and has already received investment.

• The pilot program for collaborative innovation in Hydrocarbons and Mining designed during 2012 and 2013 was able to support several of Colombia’s leading companies (Ecopetrol, Independence, Tipiel and Argos) to meet challenges through technological solutions offered by smaller companies. These companies identified solutions in sectors that were different to their own, resulting in savings of approximately $122 billion pesos and potential sales for the solutions-based companies of approximately $15 billion pesos during the next three (3) years.

• The Colombia CO4 Collaborative Innovation Program achieved that eleven (11) leading companies in Colombia (Aldor, Bancoldex, Belcorp, Conconcreto, Cotecmar, Emcali, Cardiovascular Foundation, Finagro, Haceb, Levapan and Servientrega) identified 32 technical, technological, investigative and conceptual challenges. More than 400 proposals for solutions to the 32 challenges were received from different sized companies in different sectors and regions of Colombia.

• In addition, the exposure and experience for twenty-five (25) companies that participated in international scenarios such as Mass Challenge, Startup Tel Aviv and NXTPlabs, not only improved their skills, but also generated key connections to grow and position Colombia as an incubator of companies that are more and more sophisticated and globally oriented.

• In terms of the task of strengthening capabilities for the structuring of businesses with high growth potential, iNNpulsa Colombia visited eight (8) cities (Cartagena, Barranquilla, Pereira, Cali, Bucaramanga, Tunja, Cúcuta and Ibagué) and facilitated capacity building with 219 enterprises through the Kauffman Fast Track methodology.

• Valuable connections for investment, sales and diffusion are being constantly developed by iNNpulsa Colombia.

In the regions - iNNpulsa Colombia strengthens the capabilities of organizations so that they can provide relevant services for entrepreneurs based on innovation to support their growth, as well as identifying business strategies and segments to improve competition and growth.

• A total of nineteen (19) organizations in eight (8) Colombian cities have benefitted from this action and six (6) of them have already gone through the strengthening process. These organizations are now able to provide better services to the companies that have the potential for extraordinary growth. The other thirteen (13) entities will strengthen their enterprise incubating and acceleration capabilities in 2015 in six (6) cities of Colombia.

• iNNpulsa Colombia has supported five (5) knowledge-generating organizations in order to introduce new technologies to the market that are the product of research processes and can be applied to the productive sector. This process has had an impact on organizational culture, connecting these organizations to the needs of the entrepreneurial sector.

• Through the Competitive Routes methodology, iNNpulsa Colombia has transferred and developed capabilities for cluster intervention in twenty-two (22) departments across the country with the purpose of identifying more sophisticated and profitable business segments in which the companies can compete. This occurred in 2013 and 2014.

• More than 50 competitive routes have been developed, using not just resources of the Ministry of Commerce, Industry and Tourism through iNNpulsa Colombia, but also resources from each region. This demonstrates the mobilization and articulation of local and national stakeholders as a result of our management.

MODERNIZATION AND INNOVATION FUND FOR MICRO, SMALL AND MEDIUM-SIZED COMPANIES - INNPULSA MIPYME (MSMES)

MSMEs in Colombia represent 99.7% of companies and generate 80.8% of employment . It is estimated that micro, small and medium-sized companies are responsible for 9% of total manufacturing exports and contribute 40% of Colombia’s GDP .

Since its creation in February 2012, the Modernization and Innovation Fund for MSMEs has allocated non-reimbursable co-financing resources of more than $137 billion to 338 projects, which are expected to benefit 45,393 Colombian MSMEs.

The total value of projects supported by the Fund is COP $195.738 million.

In 2014, COP $57,005 million was allocated to 100 feasible projects. With this figure, the Fund reaches an execution of 92% in the allocation of available resources for the year.

It is expected that the projects supported in 2014 will benefit 21,135 MSMEs located in 30 departments, or 93% of the national territory. Resources are being distributed by region, allowing more Colombian MSMEs to take advantage of Government incentives.

In 2014, the Fund was able to obtain an amount exceeding COP $25,191 million from the private sector (for each COP $2.2 that the Fund delivers as co-financing, the private sector contributes COP $1 ), for a total investment of COP $82.197 million in projects that benefit MSMEs. This is how the Fund has become a model for partnerships between the government and the private sector, favoring the growth and progress of MSMEs in Colombia.

Thanks to the Fund’s resources, in 2014 a total of twenty-two (22) companies developed innovative product or service prototypes under the Entrepreneurial Innovation initiative. The value of non-reimbursable co-financing resources allocated to these projects was COP $5,704 million. Following are some of the results from the companies that have completed their projects and benefited from this initiative in previous years:

• Entrepreneurial growth and entrance to new markets with products that meet needs through innovation.

• Development of world-class innovation.

• Appropriation of knowledge and international technology.

• Companies are broadening their business vision with a global approach, responding to challenges represented by new commercial agreements.

In 2014, the Fund allocated non-reimbursable co-financing resources of COP $7,879 million to 30 projects that strengthen productive chains formed by MSMEs through improving the supply chain and support provided to MSMEs in the dairy product sector. A total of 342 companies are expected to benefit from these resources. Following are some of the results obtained by the beneficiary companies in previous years that have completed their projects:

• “Win-Win” and shared value relationships are being developed with anchor enterprises and the market.

• Standardization of supply and distribution processes in anchor enterprises, optimizing resources, reducing costs and increasing sales, with the respective benefits that this represents for MSMEs in the supply chain. • The participating MSMEs develop and maintain long-term relationships with their clients to enter the market, standardizing and improving the quality of their products depending on the needs of the market while reducing costs. • Evolution from an individualistic culture to a collective perspective that benefits all enterprises participating in projects. • Appropriation of knowledge and international technology.

In the same productive supply chain line, the Fund, in partnership with the Ministry of Information Technologies and Communications, supported nineteen (19) projects to increase the connectivity of MSMEs to the internet, encouraging the use of ITCs as a business competitiveness tool. The total investment in these projects was COP $28.567 million that benefited 16,720 companies at a national level. The following are the results obtained by the MSMEs:

• Appropriation of ITCs in the processes, increasing productivity and profitability.

• MSMEs have understood the inclusion of ITCs is an investment that is necessary for their company’s growth.

In 2014, twenty-five (25) projects for the strengthening of MSMEs that are led by victims of forced displacement and the afro-descendent population were supported through the allocation of non-reimbursable co-financing resources totaling COP $13.528 million. The goal is to benefit 3,794 MSMEs. In this manner, the Fund has contributed to the government’s goal of strengthening income generation for these populations.

Last year, in response to the national government’s commitment to support enterprises in Norte de Santander, the Fund specifically designed an initiative to strengthen MSMEs in this Department. Out of the COP $3,568 million allocated to this Project, COP $1,325 million was assigned to four (4) projects that will benefit 257 companies of the region.

PRODUCTIVE TRANSFORMATION PROGRAM (PTP)

Article 50 of the 2010-2014 National Development Plan established that the Productive Transformation Program originally created by the Ministry of Commerce, Industry and Trade in 2008 should be managed by Bancoldex.

In September 2011 Bancoldex and the Ministry of Commerce, Industry and Tourism signed Agreement No. 187 of 2011 to create the institutional framework that manages the Program.

The strategic objective of the Productive Transformation Program (PTP) is to promote productivity and competitiveness of sectors that have an elevated export potential, serving as an instrument that promotes the better use of free trade agreements.

ADVANCE AND ACHIEVEMENTS OF THE PROGRAM IN 2014

EXPORTS AND EMPLOYMENT

Exports of goods and services from the PTP sectors reached USD $3,689 million in the first semester of 2014, representing a 14.3% decrease compared to the previous year’s amount of USD $4,306 million dollars. Reviewing the different components, exports from productive sectors reached USD $3,063.9 million during the first semester with a drop of 16.0% for the period. Exports of goods to Free Trade Zones totaled USD $182.4 million, 20.6% less than the result from

the same period in 2013. On the other hand, exports of services reached a total of USD $442.6 million, representing 3.5% growth compared to the first semester of the previous year. In 2014, exports from PTP goods manufacturers totaled USD $5,743.6 million, decreasing 9.7% compared to 2013. The agricultural sector showed increases in the chocolate and confectionery sector (43.7%), palm, oil and vegetable fat (32.5%), aquaculture (21.7%), and fruits and vegetables (16.7%). The manufacturing sector grew in the dockyard industry (86.3%), electricity and related goods (13.1%), leather articles and footwear industry (11.7%) and metal-mechanics (8.8%). According to the Large Household Integrated Survey conducted in the first semester of 2014 in the three (3) main metropolitan areas of Colombia, employment in the sectors that are supported by the PTP reached 1,385,664 jobs. The sectors with the highest employment percentages were the agricultural sector with 28.7%, the palm, oils and vegetable fat sector, and growth of 11.2% in the dairy industry. In the manufacturing sectors, it is important to mention the increase of 5

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