Sustainable finance played a leading role in the first half of the year in the local market
This report includes highlights indicating that sustainable finance continued to grow in the first part of the year.
"The evolution of labeled debt is a reflection of a context of change, of greater social awareness of the impact of our actions on our environment. The world is increasingly attentive to the consequences of climate change, which leads to a constant transformation by improving habits in favor of the environment and greater social responsibility. The development of renewable energies and greater energy efficiency are some of the steps that companies and governments are taking. To promote this, markets play a fundamental role in generating the necessary conditions to make them a fact", explains Julieta Artal, Head of Corporate Governance and Sustainability at BYMA.
Starting point
2022 was a great year for sustainable finance in the Argentine market, ending with 17 new issues with positive impact, a record for the local financial ecosystem that marked a favorable starting point for 2023. This is confirmed by the results achieved in the first half of the year. The conclusion? Sustainable finance continues to grow globally, regionally and locally.
For some years now, BYMA has been generating conditions that multiple participants are already capitalizing on. Since 2019 -the year in which the SVS Bond Panel was created-, at the close of 2022, said Panel consisted of 38 tradable securities. And in February 2022, the addition of a new Sustainability-linked Bond Panel (VS) was added, which already has 3 labeled marketable securities. What do these numbers mean? More positive impact for the environment and Argentine society.
Sustainable Finance in 2023: keys to growth
During the first half of this year, the speed of evolution did not stop. The SVS Bond Panel already has seven new issues, among which Green Bonds (five) and Social Bonds (two) predominate.
These come from a variety of sectors: financial, government, energy; and collaborate with multiple SDGs.
Any type of company, government or organization can issue a Green, Social and/or Sustainable Bond (SVS), as well as a Sustainability Linked Bond (VS), as long as it complies with the legal and regulatory conditions in force for the marketable securities it applies to list. Thus, in these 6 months the diversity of labeled debt issuers is maintained. Among them, PRO MUJER SERVICIOS FINANCIEROS S.A. stands out, whose main activity is to grant freely available credits aimed at women with micro and small undertakings in certain items, which issued 1 Social Bond.
Various issues made by the same issuer
This is a demonstration that this type of financing allows the achievement of its objectives; as is the case of 360 ENERGY SOLAR S.A., which made 2 issues. For its part, Genneia carried out 7 issues, among others.
Different types of issues
In this first half of the year, the distribution of bonds corresponds 71% to Green Bonds, and 29% to Social Bonds, while for now no issue of Sustainable Bonds was registered.
The issues were oversubscribed
85% of the total issues were oversubscribed, indicating the great interest in this type of debt and the impact they seek to generate through the projects they finance.
Different sectors issuing labeled debt
Among the issuers, 57% are energy companies, 28% are organizations in the financial sphere or infrastructure and the remaining 14% are public bodies.
Sustainable Development Goals
All emissions generate positive impact and contribute to different SDGs. Those that stand out the most are: affordable and clean energy (26 emissions); climate action (20 emissions); reducing inequalities (16 emissions); industry, innovation and infrastructure (11 emissions), responsible production and consumption (10 emissions).
BYMA ecosystem for sustainable finance
BYMA focuses its efforts to fulfill the commitment generated with sustainability through different actions that set a course within the financial market path. Complementarily, BYMA introduced in recent years different products such as the Corporate Governance Panel and the Sustainability Index.
Such products are aligned with widely recognized international standards and developments of the world's stock exchanges. All Panels are approved by the National Securities Commission.
Thus, all types of organizations have at their disposal a variety of pioneering developments to transform their commitment to sustainability into concrete actions, and thus generate positive impact. Together with shareholders, clients, collaborators, suppliers, regulators and the community, we build a responsible ecosystem, committed to the development of our country.
The look ahead
BYMA continues working and developing products, and promoting the necessary training to continue promoting sustainable finance in the local market, and thus generate greater value and satisfy the demand of investors. We have a team of professionals from BYMA and BCBA that works to accompany issuers on this path.
The context of climate crisis, social pressure and business motivations generate that companies pay more and more attention to their environmental and social impact. From BYMA, we seek to accompany this scenario.
Learn more about Green and Sustainable Social Bonds (SVS).
Learn more about Sustainability Linked Bonds (VS).
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