The first regional blue bond of the private company was issued in Ecuador
The International Finance Corporation (IFC) of the World Bank reported the placement of the first blue bond in Latin America by the private company, which took place in Ecuador through Banco Internacional.
The total issuance authorized by the corresponding control entities amounts to US$79 million.
“These resources will finance the loans that the bank offers to companies that contribute to the preservation of water resources, including the sustainable management of the aquaculture, fishing, and seafood value chain,” the report states.
The fishing and aquaculture sector represents 1.7% of Ecuador’s GDP and is expected to report an annual growth of 16.9% by the end of 2022.
Shrimp and tuna stand out among the main products, which report a growth of 28.76% and 10.59%, respectively, compared to 2021, representing the main non-oil sector that generates foreign currency in the country.
COMPETITIVE ADVANTAGE
Likewise, the IFC explains that this issuance seeks to take advantage of the competitive advantage that Ecuador has, since there are several companies that have certifications in terms of aquaculture sustainability such as the MSC (sustainable fishing certification) and the ASC (sustainable aquaculture certification).
“Blue bonds represent a contribution not only to the environment, but also to the economic and social development of the country, thanks to the joint work between Banco Internacional, the International Finance Corporation (IFC) and other co-investors,” add the statement.
There it is explained that the issue will have “an exhaustive control framework,” so that the destination of these credits contributes to a sustainable blue economy.
SUSTAINABLE FINANCE
For his part, Francisco Naranjo, executive president of Banco Internacional, pointed out that “Banco Internacional is proud to be the first private financial institution in the region to issue blue bonds.”
“This new milestone reaffirms our commitment to sustainable finance and contributes to economic growth through environmentally responsible practices. We are sure that this transaction will allow a greater inflow of foreign currency to the country for sustainable purposes and will boost the stock market,” added Naranjo.
While María Irene Gutiérrez, representative of the IFC, stressed that these funds will allow the bank to provide long-term loans and support projects that contribute to a sustainable economy.
In this issuance, Picaval Casa de Valores S.A. acted as stock broker, Bondholder Representative S.A., as representative of the bondholders, and Lexvalor as legal advisor.
With information from Bloomberg Línea
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