Mexico Places its Newest ESG BondBy Emilio Aristegui | Wed, 05/04/2022 - 17:19
This week, the Ministry of Finance and Public Credit (SHCP) presented Mexico’s newest ESG bond. Meanwhile, fintech Ualá introduced a new solution for SMEs seeking to offer new payment methods.
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Innovation in the financial sector is giving rise to new trends, such as open banking. This technology “has contributed enormously to accelerating the transformation of the financial sector, allowing new products and services to be built in a short time on the basis of a standardized API,” said Pablo Viguera, Co-CEO and CO-Founder, Belvo. This technology can be especially attractive in Latin America, which has high rates of unbanked people and bank fraud, he added.
Digital payments continue to expand in Mexico thanks to the offering of numerous companies such as CoDi, Conekta, Mercado Pago, Paypal, Sr. Pago, Clip and Stripe. Now, technology company Ualá has put its hat in the ring with the introduction of Ualá Bis, a tool for entrepreneurs and small businesses to offer a new payment method to their customers.
Investment mechanism have transformed alongside technology, with most people now investing through mobile phone apps, argued David Gobaud, CEO & Founder, Passfolio. “The way people invest has changed dramatically over the past decade. With the emergence of cryptocurrencies, it’s likely going to change even more.”
Mexico’s SHCP issued the BONDESG, the first sustainable sovereign bond in pesos that aims to allow the Mexican government to advance in the development of its sustainable debt market. “The BONDESG is a new low-risk benchmark for future corporate issues, aimed at actions and projects to combat social inequalities and climate change. This new issue consolidates the sustainable finance model of our country, by making available to investors a range of sustainable instruments that include: green instruments in the capital market, quasi-sovereign social and environmental bonds, and now the new BONDESG,” reads SHCP’s press release.
The BONDESG was placed at MX$14.5 billion (US$700 million) for two years and MX$5.4 billion (US$260 million) for six years.
Companies must understand regulatory frameworks to adequately perform an IPO, explained Guillermo Cruz, Managing Partner, Maquia Capital. The importance of an exhaustive analysis of the competition and commercial rules is vital for enterprises seeking to comply with IPO rules. The subsequent operation involving financial assets is also of major importance, he added.