They announce record issuance of their Sustainable Negotiable Obligations

The Sumatoria Civil Association is proud to announce the upcoming issuance of its fifth 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 financial inclusion, agroecology, regenerative livestock farming, connectivity, clean energy, and healthy food, as well as environmental conservation and regeneration, socio-urban infrastructure, the social and circular economy, and support for organizations and impact companies. The Class V Negotiable Obligations will be issued under the Guaranteed CNV SME regime.

“Our great added value lies in the situation in which we are issuing, in the midst of a context of so much volatility, which drives us to pay more and more attention to finding new alternatives to work in impact financing”says Matías Kelly, Co-Founder and Director of Sumatoria.

The ON is guaranteed by Banco Comafi, Banco Galicia, Banco Santander, Banco BBVA, Banco Hipotecario and Banco Supervielle, and will be issued for a maximum nominal value of $800,000,000, and a negative rate (Badlar – 1.55%). It is the first time that Sumatoria manages to issue bonds at a negative rate, with record demand (almost 2 billion pesos). This amount quadruples the amount of the previous ON, issued in September 2023, and exceeds all historical placements made by Sumatoria.

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

“In December 2021 we accompanied Sumatoria’s first market launch, being the only banking entity to do so. Today, being a co-guarantor and placement agent with five other banks tells us how right we were when we decided to trust and be part of the development of finances with impact,” commented Alejandro Haro, Director of Banco Comafi.

“At Santander Argentina, we want to contribute to a more sustainable world. From our scope of action we accompany Sumatoria, in the task of obtaining capital market financing for circular economy projects, for productive initiatives of vulnerable communities and for the protection of the environment.” points out María Laura Segura, member of the Capital Markets team at Santander Argentina.

“Our participation in this issue reflects our faithful commitment to the sustainable development of Argentina. We are proud to support Sumatoria in financing projects with positive socio-environmental impact,” says Juan Altuna, Head of Capital Markets at Banco Hipotecario.

“At BBVA we understand sustainability as one of our strategic priorities with a focus on climate action and inclusive growth. We accompany Sumatoria with the commitment to contribute to the creation of opportunities in the communities where we operate,” says Hernán Carboni, director of Institutional Relations of BBVA in Argentina.

“At Supervielle we are proud to accompany an entity like Sumatoria in this, its 5th class V ON, labeled as sustainable by the National Securities Commission, within the framework of our strategy to support emissions with the Social, Green and Sustainable category. In 2023, for example, we participated in 4 of the 16 issuances of SVS Negotiable Securities carried out in the country.” Said Verónica de los Heros, Sustainability Manager.

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 fifth Negotiable Obligation during 2024, going to the market to continue supporting the demand for credit impact in crisis situations, where financing is increasingly difficult to access”says Matías Kelly.

The sustainable nature of this ON was evaluated by SMS Buenos Aires, a Member Firm of the SMS Latin America network, through the issuance of a second opinion report (SPO).

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 ON Sustainable?

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:

• Provide access to connectivity in popular neighborhoods and rural areas, thus giving accessibility to other rights such as health, education and labor inclusion.
• Generate opportunities for economic development and income for indigenous and rural artisan women
• Support economic development in the Greater American Chaco by supporting small producers of organic honey.
• Reduce CO2 emissions through the development of sustainable mobility systems
• Contribute to the mitigation of climate change with renewable energy companies.
• Work for the reforestation of native forests in the high mountains of Córdoba.
• Implement regenerative livestock practices, which regenerate the soil while capturing carbon.

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

“Each project that we finance from Sumatoria represents the opportunity to contribute directly to solving some of the greatest social and environmental challenges that we currently have as a human society. Expanding our financing capacity means expanding the impact capacity of each of the organizations and companies we support, and this is what inspires us to continue growing every day.”, says Fátima Ochoa, Impact Coordinator.

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

Reciprocal Guarantee Companies (SGR), through a syndicate made up of ten 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 syndicated consortium are: Acindar Pymes SGR, in its role as leader; Argenpymes SGR; Grow SGR; Affidavit SGR; Strengthen SGR; Bind Guarantees SGR, Integrapymes SGR; Enhance SGR; SGR Resilience and SGR Union.

“Once again, we highlight the work that SUMATORIA has been carrying out with the financial inclusion of impact companies. CASFOG and its partners support this initiative and provide their guarantee to SMEs that develop a sustainable business with social and environmental commitment. The SGRs assume a commitment to the market with the full assurance that this management model must be replicated en masse by Argentine SMEs.” says Rafael Galante, Member of the CASFOG Board of Directors.

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.

In this sense, Felipe Couyoumdjian, from the Capital Markets team at TMF Trust, highlighted: “We believe that tools like this fifth issue of Sumatoria greatly strengthen and emphasize the social impact of the Argentine capital market. “We are proud to be able to accompany Sumatoria and the participating banks, and to provide our fiduciary experience in this project.”