September 22, 2022 |
Uruguay's finance ministry said Tuesday that it published a framework for sustainability-linked bonds (SLBs) to align "its national financing strategy and cost of capital with its sustainability efforts."
According to the framework, Uruguay could pay step-up rates if it fails to meet environmental targets or pay lower rates if it exceeds the targets. The country has pledged to reduce greenhouse gas emissions by 50% and preserve 100% of native forests by 2025, the finance ministry said.
Sovereign issuer look to tie interest rates to targets to lower greenhouse gas emissions and preserve native forests by 2025