Sumatoria is a civil society organization whose objective is the promotion of microfinance and the popular economy. It has various sources that allow it to grant financing to micro-enterprises, SMEs and projects with an environmental, social and economic impact at better conditions (rate, term and other facilities) than those that can be obtained in the traditional market.
The strategic areas of the funded projects are: Financial Inclusion; Agroecology, Organics, Healthy and Sustainable Food; Social economy; Circular Economy and Inclusive Recycling; and Companies with Impact.
In the operation, Sumatoria had the accompaniment and legal advice of Estudio Beccar Varela, while Banco Comafi and Banco Galicia acted as organizers, placement agents and guarantee entities in the issuance of the debt instruments issued for a value of $60,000,000.
The Sustainable Bonds are debt instruments that are characterized by having the particular addition of being issued to finance projects already identified with specific social and environmental benefits, complying with the local requirements of CNV and BYMA and international guidelines of the International Capital Markets Association (ICMA) .
The case of the Sumatoria Sustainable Bonus also has the particularity of favoring gender equity and reducing the socioeconomic gap between women and men, contributing to the fulfillment of the United Nations Sustainable Development Goal No. 5: SDG of “Gender Equality”.
In addition to contributing to the development of sustainable finance, labeled bonds (green, social or sustainable) bring benefits for both issuersas is the case of Summation, as for investors who choose to invest in this type of instrument.
It allows the issuers of these bonds to have an additional source of financing, having the possibility of obtaining a high subscription and pricing benefits in the transaction by attracting the growing demand of investors. It allows them to achieve greater synchronization of the durability of the instruments with the life of the project(s) to be financed, while capturing new business opportunities, improving investor diversification and attracting long-term capital. In addition, they improve their reputation by increasing transparency in their accountability and in most cases receive tax benefits and special reductions in tariffs and fees.
For investors, it represents an opportunity to contribute through direct investments to national climate adaptation, food security, public health, energy supply, among other positive environmental and social impacts, while obtaining financial returns comparable to those of the “ conventional track.
“At SMS we accompany both issuers of labeled bonds and investors of this type of instrument who are committed to financing projects with a strong positive social and environmental impact on their way to contributing to the development of sustainable finance. We are proud to be part of this important milestone for Sumatoria and for the sustainable development of the country and the region”he pointed Julian Costabile, Partner in charge of the Sustainability practice.
Source: Ambito
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