Sumatoria announces another record issuance of its Sustainable Negotiable Obligations

The Sumatoria Civil Association is proud to announce the issuance of its sixth class of Negotiable Obligations, an initiative aimed at financing projects and undertakings with social, environmental and sustainable impact. These projects cover vital areas such as the circular economy, financial inclusion, agroecology, regenerative livestock farming, connectivity, clean energy, and healthy food, as well as environmental conservation and regeneration, socio-urban infrastructure, and support for community organizations and companies. impact. The Class VI Negotiable Obligations will be issued under the Guaranteed CNV SME regime.

“The context forces us to continue accompanying ventures that generate positive impact, so necessary to resolve very complex situations in our country. We prioritize effort and commitment, and we are going to continue growing with intact conviction. Sumatoria is a protagonist in “financial innovation, promoting vehicles of financial fraternity”says Matías Kelly, Co-Founder of Sumatoria.

The ON is guaranteed by Banco Comafi, Banco Galicia, Banco Santander, Banco BBVA, Banco Hipotecario and Banco Supervielle, and was issued for a nominal value of $1,825,000,000 at the Badlar rate + 5.49%. This amount far exceeds the amount of the previous ON, issued in March 2024 for $800,000,000, with a record demand (almost 3 billion pesos) demonstrating once again that the market values ​​the impact and surpassing all historical placements of Added together, with this issue completing a growth of 1200% vs the previous year.

From the Sustainability Management of Banco Galicia, Constanza Gorleri, points out “This new issue with a purpose proves to us that the path we started a few years ago, around strengthening sustainable finances, is the correct one. Thus, we not only respond to a market demand, but we also address social and environmental problems. It seems important to us to continue strengthening our work together with Sumatoria because we believe that the social economy is the key to the development of the country.”.

“Our sixth Negotiable Obligation represents a growth of more than 100% compared to the previous one. On the one hand, for us it is a tool that allows us to meet a growing demand for credit for investment with positive social and environmental impact. On the other hand, it provides Capital Market actors with an instrument to invest and generate an impact on the real economy. In that sense, it is impact-impact for each of the parties.” indicates Andrés Schapiro, Finance Director of Sumatoria.

“At Banco Hipotecario, we celebrate the opportunity to participate in this Sumatoria issue, which combines social and environmental impact with financial innovation. This type of initiative reflects our commitment to the development of a more inclusive and sustainable economy, while offering investors tools aligned with current challenges. It is a pride to be part of this project that promotes responsible growth in Argentina.” commented Juan Altuna, Head of Capital Markets, Banco Hipotecario

Sumatoria has achieved before Bolsas y Mercados Argentinos (BYMA) and the National Securities Commission (CNV), the inclusion in the Panel of Social, Green and Sustainable Bonds (SVS BONDS) of this new issue, given the sustainable nature of the projects to be finance. This will be its second labeled as sustainable in 2024.

What is a Social, Green or Sustainable ON (SVS)?

A Negotiable Obligation is a private debt instrument that can be issued in the capital market. The SVS label assures investors that the destination of the funds will have a double impact, both economic and Social/Environmental.

Sumatoria, in its blended finance strategy, uses them to obtain financing and thus be able to grant credits to projects that generate positive impact.

“We are issuing our sixth Negotiable Obligation, another record Sumatoria issuance that demonstrates that the market continues to support and value our proposal, to transform these resources into credits for those who seek to solve real social and environmental problems”says Matías Kelly, Co-Founder of Sumatoria.

The sustainable nature of this ON was verified by SMS Buenos Aires through the issuance of a second opinion report (SPO). SMS Buenos Aires is a professional firm specialized in auditing, consulting, taxes, outsourcing, sustainability and technology services for companies and is also a member of the SMS Latin America network.

“As an international audit firm that works on this type of projects throughout the region, SMS is particularly proud that in our own country of origin – Argentina – we have a bond issuer as committed and innovative as Sumatoria. We think that this approach has the potential to not only directly impact its local beneficiaries, but can also inspire many other actors throughout Latin America on how to use the capital market to produce impact.” adds Julián Costábile. SMS Buenos Aires partner. Member firm of SMS Latin America.

The Beccar Varela firm, one of the most important legal firms in the country, and advisors specialized in the capital markets and impact organizations in Argentina, plays a fundamental role in its comprehensive advice to Sumatoria and in particular with the structuring of the ONs issued .

“At Beccar Varela we accompanied Sumatoria in its beginnings and we continue to help them meet their objectives. We are proud to be part of a new issue, which reaffirms the interest and support of investors, who once again choose to acquire their securities and in this way generate a positive impact on the Society. It seems important to us to continue working on sustainable finance, contributing our grain of sand to make it possible for more and more organizations to join in.” says Luciana Denegri, partner at Beccar Varela.

What are the projects with impact that will be financed with this Sustainable ON?

Thanks to this issue, Sumatoria has the possibility of financing projects that generate a direct social or environmental impact and in several cases, projects that integrate the two dimensions of impact, such as:

• Promote the development of local producers and increase the offer of healthy and organic products in the market, generating marketing spaces and direct links between producers and consumers.
• Contribute to the transformation of the energy matrix, offering the market renewable energy alternatives, such as solar panels.
• Promote sustainable construction systems, developing products such as plastic lumber from recycled plastic.
• Manage plastic waste from agriculture for reuse, in turn generating employment and local development opportunities.
• Include people excluded from the labor market, through recycling activity, recovering recyclable materials to manufacture sustainable products such as urban furniture and other objects.
• Empower indigenous women and artisan families, through the creation of sustainable textile products that respect the environment and promote social inclusion.
• Generate formal employment for women in situations of socioeconomic vulnerability, allowing them to continue with their family activities.
• Offer financing opportunities to micro-enterprises throughout the country, favoring the generation of employment and the development of people in situations of socioeconomic vulnerability.

These are just some of the initiatives that we seek to strengthen through the credits we grant.

“The universe of projects, organizations and companies that address social and environmental problems, in an innovative way and with business models and sustainable development, is growing exponentially. Day by day we learn about projects that inspire and motivate us to continue growing as an organization, convinced that the credits we grant allow organizations and companies not only to grow and strengthen, but also to increase their impact. says Fátima Ochoa, Impact Director.

The broadcast has some key actors, in addition to those mentioned:

Reciprocal Guarantee Companies (SGR), through a syndicate made up of nineteen SGRs coordinated and structured by CASFOG (Argentine Chamber of Guarantee Companies and Funds), provided syndicated guarantees that allowed strengthening the counter-guarantee scheme planned in favor of the banks. The SGR participating in the union are: Argenpymes SGR in its role as leader; Acindar SMEs SGR; Grow SGR; Affidavit SGR; Strengthen SGR; SGR Federal Guarantee; SGR Rural Guarantee; Assess SGR; SGR Endorsement Field; Whose SGR Endorsement; FID SGR Guarantee; Bind SGR Guarantees; Innova SGR; Integrates SMEs SGR; Mobile SGR; Neuquen SMEs SGR; Boost SGR; SGR Resilience and SGR Union.

“At CASFOG we want to express our firm commitment to financial inclusion, a value that we share and promote through the Unions. We are extremely pleased to be able to accompany, for the fourth consecutive series, projects that contribute to improving the quality of life and the creation of a more responsible and equitable environment“, says Maria Paula Di Pietro- General Manager of CASFOG.

Likewise, the ON has a counterguarantee intended to guarantee the guarantee of said entities, consisting of an assignment of collection rights and guarantee certificates of different SGRs, for which purpose TMF Trust Company (Argentina) SA has been designated as the guarantee agent. the guarantee.

Felipe Couyoumdjian, commercial director and leader of the Capital Markets line at TMF Trust Company (Argentina) SA commented that: “At TMF, we are very happy to accompany Sumatoria in this new series that, with sophisticated guarantees and counterguarantees, demonstrate once again that impact issues take place in the growth of the local capital market.l.”