BYMA incorporates a new Red Surcos S.A. Sustainability Bond.

A new Sustainability Linked Bond (VS) issued by Red Surcos S.A. for a value of USD 15,000,000 joins BYMA's VS Bond Panel. This is the second issue of this type to join the panel, the first one took place in June of this year and was made by the same company.

Red Surcos S.A. is an Argentine capital company dedicated to the development, production and commercialization of inputs for the agricultural sector, mainly phytosanitary products such as herbicides, insecticides and fungicides.

Red Surcos' ON is aligned to the Principles of the ICMA (International Capital Market Association) Sustainability-Linked Bonds.  

‍Sustainability-Linked Bonds

‍Any type of bond whose financial and/or structural characteristics may vary depending on whether or not the issuer achieves certain predefined Sustainability or ESG objectives. In this sense, issuers explicitly commit themselves to future improvements in their sustainability performance within a predefined term.

In this regard, BYMA's President, Ernesto Allaria, expressed: "In Argentina, more and more companies are becoming aware of the importance of sustainability and are taking concrete actions to make a contribution. This is the case of Red Surcos, which issues its second VS Bond in the course of 2022, to collaborate with sustainable development. From BYMA we are very proud to continue incorporating this type of bonds that have a positive environmental and/or social impact; and especially to see that the issuers that have already ventured into this type of financing, choose it again".

‍Features of the bond that is incorporated into BYMA's VS Panel

‍Red Surcos established a KPI that refers to the growth in sales volume (in liters) of the Nano herbicide family (Elite line). According to the External Review report, the KPI is considered material from an environmental point of view, since the formulation of Elite herbicides based on the application of nanotechnology reduces the environmental impact coefficient with respect to traditional herbicides. And it addresses 3 of the 12 principles of Green Chemistry:

- design safer chemicals due to reduced content of active ingredients;
- use safer solvents and auxiliaries coming from plant / biological sources);  
- use of renewable raw materials (Principle 7).

‍Features of BYMA's VS Bond Panel

‍BYMA's VS Bond Panel is comprised of marketable securities that carry a positive environmental and/or social impact, as is the case of Red Surcos S.A, demonstrates the growing global, regional and local interest in sustainable finance.

This development is the first Sustainability-Linked Bond Panel (VS Bonds) in the Argentine market. The issuers of these instruments explicitly commit to future improvements in their sustainability performance within a previously delimited timeframe. This is an unprecedented development in the country, carried out between BYMA and the Buenos Aires Stock Exchange, which proposes a new form of financing that promotes sustainable finance at the local level.

‍More information about BYMA's VS Bond Panel here.