Agreement to Promote Thematic Issuances in Guatemala

By Mayora IP

The Central American Bank for Economic Integration (CABEI) and the Guatemalan National Stock Exchange (BVN) subscribed an agreement to promote the Environmental, Social, and Governance (ESG) bond market in Guatemala's capital market, providing technical assistance resources to Guatemalan issuers.

The objective of this program is to increase the awareness of issuers, investors, stakeholders, and key market players of the strategic role that ESG investments play in positively impacting economic, social, and environmental matters in Central American countries.

Recently, the Inter-American Development Bank (IDB) suscribed through IDB Invest the first sustainable bond with incentives linked to objectives to support green and social projects in Guatemala. IDB Invest participated with a total amount of USD 30 million and mobilized up to USD 20 million.

The resources mobilized are geared toward financing credits for micro, small and medium enterprises (MSMEs), as they are key to the Guatemalan economy, contributing to 80% of employment. Yet, it is estimated that only 12% of these have access to financing.

Guatemala is one of the world's most vulnerable countries to the effects of climate change. Globally, it ranks fifth among the countries with the greatest exposure to economic risk in the face of climate disasters.

"The banking sector is in a key position to significantly influence the conservation and protection of the environment by directing the flow of capital toward greener projects and companies," said Marisela Alvarenga, Managing Director and Head of Division of Financial Institutions at IDB Invest.