LatAm issuers line up green bonds for 2019

LatAm issuers line up green bonds for 2019

Bonds Corporate & Sovereign Strategy Capital Markets Fixed Income Regulation Project & Infrastructure Finance Argentina Chile Peru Brazil

Argentina, Chile and Peru could all issue green bonds next year, giving a lift to an otherwise sluggish market for the environmentally-focused notes, LatinFinance has heard.

"The Santiago and Lima stock exchanges introduced green bond guidelines this year, and that is making us much more positive about next year's issuances," said Monica Filkova, the head of research at the Climate Bonds Initiative (CBI).

The province of Mendoza in Argentina has recently set regulations for fixed-income issues to fund eco-friendly projects, she said. "This indicates that they might issue a green bond at some point in the near term."

Filkova also said she expects green bond sales pick up in Brazil next year, after dropping more than 10 fold to $210m in 2018. "We saw Suzano and Klabin issue bonds this year, and these certified paper and forestry issuers come back to the market periodically," she said.

Green bond issues have dropped to $543m amid difficult market conditions this year from $3.96bn in 2017, according to the CBI.