CABEI's first COVID-19 Social Bond for Recovery and Reactivation awarded
The Green, Social and Sustainable Bonds 2020-2021 Awards were presented this week by Mexico's Green Finance Advisory Council.
Tegucigalpa, December 10, 2021.- For issuing the first social bond COVID-19 as a multilateral bank in the local market in Mexico and for being the largest issue in the Mexican market, the Central American Bank for Economic Integration (CABEI) was awarded in the framework of the Green, Social and Sustainable Bonds 2020-2021 Awards.
CABEI's first COVID-19 Recovery and Reactivation Social Bond was issued at the end of June based on the Bank's Social Bond Framework, for MXN 5,000 million at TIIE minus 30 bps with a 3-year term, equivalent to US$245 million and at the lowest cost in the last decade in the Mexican market.
This bond is intended to finance economic recovery and reactivation projects such as: The economic reactivation program through MYPYMES in Honduras, the Vale Digital project in Panama, among others, these, with a direct impact on job generation, reactivation of micro, small and medium enterprises facilitating access to financing to counteract the effects of the pandemic, support and care for vulnerable groups guaranteeing sustenance, basic cleaning products and medicine, mitigating the effects of the cessation of economic income due to loss of work to households in areas of extreme poverty or need all this for the benefit of the population of the Central American region.
For CABEI Executive President, Dr. Dante Mossi, the issuance of this bond is a demonstration of CABEI's support for the region during times of adversity. "We reaffirm our commitment to the reactivation and economic recovery of the region, as well as to innovation in international financial markets ASG," he said.
The announcement of the awards "First Covid social bond of multilateral banking in the local market and largest amount issued in 2021" was made this week at the MX21 Sustainable Finance Forum by Mexico's Green Finance Advisory Council.
The Green, Social and Sustainable Bond Awards recognize issuers in the market that reinforce their commitment based on increasingly solid sustainability strategies and celebrate best practices and innovation in sustainable finance in line with the most significant advances in Mexico's diverse economic sectors.
Mexico, CABEI's extra-regional partner since 1992, is one of CABEI's main bond issuance markets. To date, the Bank has issued 23 bonds in this market for more than US$2.6 billion, representing around 20% of the Bank's historical issuance.