With great pride the Sustainable Finance Working Group (GTFS) shares the announcement of the first time emission of green bonds by the Panama Stock Exchange, the Inter American Corporation for Infrastructure Financing, and the MMG Bank; as well, Banistmo and BID Invest will emit the first social gender bond.
Aligned with the Sustainable Development Objectives, this historic bond emission represents an opportunity for the Panamanian financial sector to channel national and international capital markets in sustainable investment initiatives. To meet climate and ODS commitment; it is fundamental to allocate financing to activities that support these objectives.
These bonds have the objective of financing sustainable development projects such as water treatment, recycling, waste management, renewable energy, sustainable transport, sustainable agriculture, ecotourism, and other innovative projects. These projects not only meet the objective of reducing social and environmental risks; but also are profitable and will increase the country’s prosperity favoring the growth of the small and medium enterprises.
Aimeé Sentmat de Grimaldo, the executive president of Banistmo, shares that these gender bonds respond to “the Bancolombia and Banistmo interest in contributing to the country’s development through initiatives that allow to close the gap in opportunities of access to capital for women; with the alliance of BID Invest, we were able to develop a shared value proposal that will enable us to finance projects with a high social impact in Panamá.”
Olga Cantillo, the executive vice president and general manager of the BVP, highlights that the pioneering emission of green bonds will allow incorporating alternative investments that are sustainable, responsible, and aligned with ESG (environment, social, and governance) criteria. Additionally, the BVP trusts that these steps reinforce the sustainability objectives that this group supports for the Panamanian finance sector.
About the GTFS
The GTFS is composed by the Panamanian Ministry of Economy & Finance, the Ministry of Environment, the Ministry of Social Development, the Superintendency of Banks, the Superintendency of Insurance and Reinsurance, the Superintendency of Securities Market, the Panama Stock Exchange, the Banking Association of Panama, the Panamanian Association of Insurers, the Panamanian Chamber of Managers of Mutual Funds and Pension Funds, the Latin American Confederation of Credit Unions, the Panamanian Chamber of Capital Markets, the National Council of Private Companies, and the Panama National Bank. This initiative was supported by the Central American Bank for Economic Integration, the National Association for the Conservation of Nature, and the UNEP Finance Initiative.
The GTFS was established in September 2019 with the objective of enabling a consolidated effort to position Panama as a sustainable finance hub. The group has participation from the key representatives of the region’s finance sector, positioning this initiative as a role model for setting the groundwork for the development of a sustainable and competitive financial sector.