The placement of the bond took place during the day of Friday, October 22. With an oversupply, offers were received for 40.2 million pesos for an issue of 18 million pesos.
TECHO is a civil association established in 2003 in the City of Córdoba, where it has its administrative headquarters. Its main activity is to dedicate itself to improve the quality of life of those most in need through the promotion, management and advice of projects for the development of housing programs.
The issuer has a “Social” rating, prepared by an External Reviewer and which is aligned with the four components of the ICMA Social Bond Principles: use of resources, for the construction of houses in this case; process for the evaluation and selection of projects; administration of funds; and reporting up to the full allocation of resources.
In relation to this aspect, TECHO will include a synthetic report on the social benefits achieved by the eligible project and a report on the indicator: number of emergency homes built as a result of rental savings. That is, a set of information and quantitative indicators that will allow to clearly determine the positive social impact and / or the mitigation of the social problem that will be derived from the PFS.
In this regard, the president of BYMA, Ernesto Allaria, explained: “We are proud of the incorporation to the SVS Panel of BYMA of a Negotiable Obligation from a civil association such as TECHO. This novelty accounts for the growing interest of local radio stations in sustainability. We will continue working to create the conditions that promote a growing positive social impact in Argentina ”.
“The successful placement of Techo is the result of many hours of work and commitment from people who are convinced that with a clear objective, the public and private sectors can overcome obstacles that sometimes seem insurmountable. The objective here is that the financing arrives to issuers such as Techo, which is the first Civil Association that meets the requirements of the Social Bonus. A milestone in the capital market. There is an Agenda of volunteers that, within the framework of the CNV-UNDP Agreement and Laboratory, grows every week so that this gains scale and sustainability. A thank you to all those who believed, a year ago, that this would be possible “, said Monica Erpen, director of the CNV.
What is the situation of the SVS Bonds in Argentina?
With the incorporation of the ROOF ON, the BYMA SVS Panel is made up of 2 issuers that have labeled marketable securities as green, 5 as social and 2 as sustainable. Likewise, two green bonds that were labeled in the panel have already been amortized.
It should be noted that the last incorporation of a Negotiable Obligation labeled as Social to the Panel took place in September, and was from the SION company belonging to the Telecommunications sector. In this case, the project was focused on generate impact in two aspects: with the construction of new access networks and / or their adaptation; and with the effects of the target population determining a positive social impact.
In broader terms of sustainability, 5 stations are already part of the BYMA Corporate Governance Panel. In turn, the Sustainability Index already has 3 rebalances at the local level.
These types of developments promote the creation of conditions for the entire ecosystem to evolve in terms of sustainability.
About SVS Bonds
They are negotiable securities that are used to finance or refinance projects, in whole or in part, with social and environmental benefits or a combination of both (sustainable bonds).
Regarding the requirements, issuers must have an External Review carried out by an independent third party with experience in environmental and / or social matters. They must also prepare a report indicating the use of the funds from the issuance and, if they have been monitored, report the social and / or environmental benefits achieved from the financed / refinanced projects.
Based on the new functionalities of BYMA PRIMARIAS, SVS marketable securities have a differential treatment in order to achieve visibility from their placement.
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