The Argentine thematic bond market is looking for its platform to take off in Argentina. This is a relatively new niche in the country and in the region that requires certification under international standards, and has already been implemented in Europe for more than a decade.
In Argentina there were only a few issuances, which complied with the Green Bond Principles 2018 (GBP) and obtained the rating of the International Capital Market Association (ICMA).
The latest official figures show that seven green bonds were issued in 2020, for a value of over 10 billion pesos.
“Last August two Negotiable Obligations were issued under the CNV’s Guidelines for the Issuance of Social, Green and Sustainable Negotiable Securities in Argentina (Green Bonds) for a total of $3.718 billion, co-issued by CP Manque and CP Los Olivos , after 5 Green Bonds were issued in 2020 for $6.691 billion”, stated a recent report from the National Securities Commission.
Previously in 2017 only two provinces -Jujuy and La Rioja- had made efforts with this type of green bonds to finance wind farms (Caucharí and Arauco, respectively) for a value of approximately $200 million in each issuance.
The CNV is seeking to promote this type of bond and has launched a sustainable finance programme, the first step of which is a dissemination strategy based on guidelines: Socially Responsible Investment; Social Green and Sustainable Bonds; and for External Assessors.