BYMA adds a new Bono Social to its SVS Bond Panel

BYMA approved the incorporation of a new Negotiable Obligation labeled as "Social" in its Panel of Social, Green and Sustainable Bonds (SVS), the Panel integrated by negotiable securities with a positive environmental and/or social impact.

The ON was issued under the simplified and guaranteed regime for issues with social impact by means of RG 940, which seeks to promote access to financing for actors of the socio-productive economy.

The issuer is Pro Mujer Servicios Financieros, an entity dedicated to the granting of freely available credit mainly to women with micro and small business activities with the objective of improving their standard of living.

‍Pro Mujer will allocate the total net proceeds from the issuance to provide loans directly to 1.700 people, 86% of whom are low-income women owners of micro and small businesses, who carry out or work in productive economic activities, services, commerce, textiles or agriculture and livestock, in the semi-formal economy, who need financing for investment capital or operations of their micro enterprises or for their families, and do not obtain it in an adequate and/or timely manner from conventional banking.

With this first issue in 2023, BYMA's SVS Bond Panel consists of 39 marketable securities, 12 of which are labeled as "Social".

In this regard, the President of BYMA, Ernesto Allaria, said: "It is very gratifying that non-profit organizations continue to find in the SVS Bond Panel a source of financing for initiatives that generate social impact for our country. In this case, for a project focused on gender equality. We work internally and externally to generate the conditions for the financial ecosystem to evolve towards equal opportunities". And he detailed: "In November 2022 we launched a Gender Equality Policy in BYMA".

About Social Bonds

According to the Social Bond Principles (SBP), Social Bonds are any type of bond in which funds will be applied exclusively to finance or refinance, in part or in full, eligible social projects, whether new and/or existing; and which are aligned with the four main components of the SBP. Social projects are intended to help address or mitigate a given social problem. Eligible projects include Gender Equality, Affordable Housing, Food Security, among others.

About the issue

The issuer has a "Social" rating, prepared by an External Reviewer and is aligned with the four components of ICMA's Social Bond Principles: use of resources, process for the evaluation and selection of projects; administration of funds; and reporting until full allocation of resources.

In relation to this last aspect, Pro Mujer commits to issue externally reviewed reports on the application of funds obtained from the placement and their application to the Eligible Social Projects and also, on the social benefits derived from the Project.

The development of this new SVS instrument also has the potential to contribute to the SDGs of: end poverty - gender equality - decent work and economic growth - industry, innovation and infrastructure - reduction of inequalities.

It should be noted that the Mercado Abierto Electrónico (MAE) and Bolsas y Mercados Argentinos (BYMA) maintain a mutual collaboration agreement for the Primary Placement of Social, Green and Sustainable Bonds. This ratifies the firm conviction of both organizations to join efforts and resources to collaborate with the National Securities Commission in promoting the development of a transparent, inclusive and sustainable Capital Market that contributes to the economic and social progress of the country.

‍More information about BYMA's SVS Bond Panel is available here.