Thematic bonds are fixed income instruments designed to finance projects related to sustainability and climate change adaptation and mitigation.
These bonds are subject to the same capital market and financial regulation as traditional bonds. Law No. 10051 “Law to enhance financing and investment for sustainable development through the use of publicly-traded thematic bonds” of October 29, 2021, regulates the requirements for issuing thematic bonds and authorizes decentralized governmental entities and MSMEs to issue such bonds in relation to projects classified as green, social, or sustainable.
Law No. 10051 offers benefits and incentives for the issuers of the bonds to obtain financing for qualifying projects. For investors, thematic bonds also provide important benefits, especially for the decarbonization and diversification of investment portfolios, with the particularity of obtaining a financial return while generating a positive impact.
For more information, please contact Luciana Pineda, Director of our Environmental Practice at: This email address is being protected from spambots. You need JavaScript enabled to view it..
By Luciana Pineda
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