Santander Argentina was involved in the placement of the first green bond issued on the primary local debt market. The issuer was AES Argentina Generación S.A., and the proceeds will be used to finance a 100 MW wind power plant in Neuquén (Vientos Neuquinos).
Santander Argentina chose to team up with AES Argentina through this mechanism, in line with the Bank's commitment to ESG principles (environment, social, governance).
The placement, which also involved other banks and financial institutions, amounted to USD 48.4 million, with instruments at 9 months and a rate between 7.5% and 8.0%, depending on the series.
Ignacio Lorenzo, head of global debt financing at Santander Argentina, said: “we strive to identify sustainable financing opportunities for our customers, and we also have a commitment to institutional and retail investors so that the application of their resources not only provides them with a satisfactory yield, but also the option of backing sustainable projects”. He added: “We hope that in the near future market prices will make a clearer distinction with regard to this kind of financing”.
“This bond placement is an example of the diversification of our financing, and it is also a milestone for AES Argentina as our first green bond on the local market. This means that as a company we are making a contribution to Argentina's sustainable development, and helping to carry through the country's undertaking to boost production of renewable energies. The issue is in line with our strategy of growth based on renewable energies, and it is an example of the diversification of our financing”, said Martin Genesio, chairman of AES Argentina.
Santander has been an active participant in the Sustainable Finance Encounters alongside other market operators such as the National Securities Commission (CNV), the Argentinian Chamber of Mutual Investment Funds, the country's insurance regulator, rating agencies, settlement and clearing agents, investors, development institutions, ministries, issuers and other banks.
The operation constituted another step towards the goal of bringing sustainability principles into the Argentinian capital market in line with world markets. In 2019 the CNV succeeded in furnishing the alignments which BYMA subsequently regulated by launching a social green sustainable fixed income panel (SVS). The panel already has a marketable logistics sector bond (also issued by Santander).