Exchange in Focus: Costa Rica Exchange Lists First Green Bonds
27 May 2021
The Costa Rica Stock Exchange (Bolsa Nacional de Valores) has announced the first public offering of green bonds that will be fully placed in the local market. The resources will be used to refinance green credit lines, specifically related to renewable energy, energy efficiency and water management projects.
The bond issued by Banco Popular y de Desarrollo Comunal represents an amount of around $80 million with a five-year term and a risk rating of AA + (cri) / scr AA +. The issuance is also the first green bond referenced on the Interbank Reference Rate (TRI).
“Costa Rica is very well positioned internationally due to its commitment to the environment, which gives us the advantage over other countries to attract foreign investors interested in these products and also become the Central American hub for green emissions. It is an opportunity that as a country we should not miss. I congratulate Banco Popular for being the pioneer, for daring to make a difference that not only benefits the capital market but also the sustainable development of our country. I am sure that this bond is only the first one of many others that will come to the market”, María Brenes Quesada, Director of Business and Corporate Relations of the Costa Rica Stock Exchange (Bolsa Nacional de Valores).
Green bonds are classified as securities through which companies and the Government can obtain financing exclusively to finance or refinance projects that have environmental benefits.
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Part of a global trend
Almost 40 markets world-wide have a sustainability bond listing segment. To learn more, visit the SSE’s database of stock exchange sustainability activities. Currently, the database has data on 107 stock exchanges and tracks progress on key activities where exchanges are promoting sustainable business and investment practices. It is the largest data set of its kind and the data is freely accessible.About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.
