Sustainability, an opportunity for companies to enter the capital market

The Capital Market currently plays a leading role in the face of a great opportunity: play a catalytic role in the transition to a more sustainable world. The labeled debt boom is now a visible reality and the local market is no exception. A large number of marketable securities have already been tagged. Although the greatest number of instruments has had as its purpose the funds the financing or refinancing of projects eligible as green, in BYMA we are witnessing a growing interest in instruments with social impact and impact on both axes, which they are sustainable links.

In Argentina there has been an SVS Bond Panel developed by BYMA since 2019. Although the growth of these issues has been sustained since its launch, 2021 was a year of marked evolution that does not seem to stop. To date, 33 marketable securities have been tagged in the BYMA SVS Bond Panel, of which 30 are current, reaching a total of labeled debt of over $ 1,000 million. So far in 2022, 12 marketable securities have been listed by 9 issuers: Pampa Energía, YPF Luz, Madeco, Luz de Tres Picos, Sumatoria, Edenor, Sion, 360 Energy Solar and Citrusvil.

BYMA’s SVS panel consists of negotiable securities which aim to contribute to the improvement of the environment and / or social problems. It is a cutting edge sustainable product. These bonds allow investors and companies to collaborate in realizing the multiple global challenges raised by the United Nations.

And there is more. In February 2022, BYMA was a pioneer in launching a sustainability-related bond panel in Argentinawhich already has a first issue by Red Surcos SA It is any type of bond, in this case they can be Negotiable Bonds or Public Securities, whose financial and / or structural characteristics may vary depending on whether the issuer reaches, or less, certain Sustainability objectives within a predefined period.

Excellent news is the entry of SMEs and civil associations in this current scenario where we have noticed an increase in their participation in financing through Social, Green and Sustainable Bond. Five of the instruments were issued by NGOs. In many cases it is your gateway to the capital market.

Any type of company, government or organization can issue an SVS Bond and a VS Bond as long as it complies with the legal and regulatory conditions applicable to the marketable securities it seeks to list.

It’s all “good news”, as are the projections you can see if a challenge is advanced: increase the knowledge of the actors on this type of financing. As a stock exchange, we work towards this goal through education and awareness campaigns.

For BYMA, sustainability is a priority in pursuit of Argentina’s economic, environmental and social development.

Emissions 2022

Division by category: Social, Green, Sustainable (2022)

Green projects:

• Energy of the Pampas: The funds will be used for the expansion of the Pampa Energía III (PEPE III) / La Bahía wind farm, linked to the renewable energy sector.
• YPF electricity: The net proceeds from the issue will be used to fully finance the “Zonda I (PSZ)” solar park, linked to the renewable energy sector.
• Madeco Argentina SA: Funds that will be used for the purchase of machinery to achieve greater energy and production efficiency, for the refinancing of expenses incurred for the manufacture of finished product stocks and for the payments of future purchases of raw materials.
• Light of the Three Peaks: financing for the construction of the El Mataco III and Vivoratá wind farms, linked to the renewable energy sector and will provide for the possibility of using the funds received from the issue to repay the investments made in the new wind farms.
• 360 solar energy: All the funds raised will be used to finance the 360 ​​Energy La Rioja Photovoltaic Solar Park project, with 24 MW of installed capacity by investors, linked to the Renewable Energy sector.
• Citrusvil SA.: all the funds raised through the issue will be used for the refinancing of three projects already implemented that have environmental benefits: (a) Project A – Production of electricity from biogas, (b) Project B – Systematization and control of laminar soil erosion on the San Rafael farm and (c) Project C – Light redevelopment of the industrial complex.
• Social projects: Edenor: the refinanced debt will be used to refinance eligible completed projects that have a positive social impact through access to safe electricity in popular neighborhoods, including, among others, greater equity among residents in those neighborhoods, development / improvement of the basic infrastructures and the fact of providing the identity of the customer by being able to use the top-up ticket of the meter as a document to verify the address.
• SION SA.: The funds obtained from the placement will allow the company to cover the costs of building new Internet access networks and / or their retrofitting to mitigate the lack of existing supply for this type of infrastructure in the provinces of Tierra del Fuego, Santa Cruz, Chubut, Mendoza, San Juan and Entre Ríos, as they are the provinces with the lowest coverage of high-speed Internet access networks, according to official measurements.
• Sustainable projects: Sum for a new economy: funds raised will be allocated to projects aimed at providing and / or promoting access to finance, job creation, security and food systems, with environmentally sustainable management of natural resources, socio-economic development and prevention and pollution control.

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