The sustainable financing or through bonds under the green, social, sustainable and linked to sustainability labels, surpassed the milestone of the 200,000 million pesos in the Mexican Stock Market (BMV).
“This amount issued is a reflection of our issuers’ commitment to a sustainable transition, where we are not only leading thematic financing in the country, but we are also promoting initiatives that aim to strengthen their plans under ESG criteria,” commented José -Oriol Bosch, CEO of the BMV Group.
In a statement, the stock exchange explained that since 2016, when this market was born in Mexico with the first issuance of a green bond for 3,000 million pesos, 70 thematic bonds have been placed, of which 29 are sustainable, 17 linked to sustainability, 16 green, 7 social and one blue (which finances projects focused on caring for water).
All these issuances made by companies, financial and government institutions add up to a total accumulated amount of 208,834 million pesos considering 2016 and up to this month of May.
According to data from the stock exchange, 2022 was the most dynamic year in this market, having channeled financing for 88.730 million pesos, resources that accounted for 44% of all funding issued in long-term debt in said period.
The second best year was 2021 (when the effects of the Covid-19 pandemic were still present), as the issuers obtained resources of 36,545 million pesos. 2017 was the third best year for this market, with an amount financed for 18,000 million pesos.
These first five months of 2023 (January until May 11) stand out because the financing of thematic bonds is almost close to the 2022 record, since the issued amount amounts to 33,457 million pesos, equivalent to 32% of all the resources financed in the BMV debt market in the indicated period.
“We trust that the activity in the debt market under these criteria will continue to be very dynamic and relevant, and we have no doubt that we will continue to exceed the number of issues and the amount issued year after year,” added the general director of the BMV.
In its statement, the stock market highlighted that “of the total thematic instruments, sustainable issues represent 42% of this type of financing, followed by linked and green issues, with 25% and 21%, respectively.”
While the firms in the financial sector (20.16%) have been the most active in this market, followed by development banks (16.54%). Among the corporates that register the most demand for thematic bonds are those for frequent consumption (15.48%) and infrastructure (13.60%).
To support companies to gradually adopt environmental, social and governance (ASG) criteria in their operations, the BMV launched the Sustainable Accompaniment Program (PAS) in 2021.
From its first edition to the one held this year, more than 500 participants representing more than 350 companies, including public and those that could be listed on the BMV, have registered.
It also offers the Sustainability Guidewith which companies can be guided to design their sustainability strategies, which contributes to communication with investors and their stakeholders.
