Mercado Libre has joined a growing number of companies sourcing investment with green bond initiatives as the company looks to reduce its environmental footprint. Meanwhile, Miniso stocks hit BIVA, while Banorte and Rappi band together to offer help to struggling restaurants.
All this and more in The Week in Finance.
Mercado Libre, Latin America’s largest digital marketplace, announced its successful public offering of US$1.4 billion in green bonds. The “Sustainable Bonds 2026” will have a 2.375 percent rate until 2026, while the second bond, “2031 Notes” will have a rate of 3.125 percent, expiring in 2031. According to the company, financing generated by the bonds will go toward the enhancement of financial inclusion, decreasing the company’s carbon footprint by promoting a carbon neutral logistics network, and education targets to increase social development.
The green bond announcement comes soon after the company received new EVs for its delivery services in Mexico.
Stocks from the low-cost variety store chain Miniso are now available on Mexico’s BIVA exchange. The “MNSO” stock entered the market on Tuesday with a price of US$30.5 (MX$602). Miniso is a Japanese brand backed by Chinese capital and in 2019, Mexican business magnate Carlos Slim bought into the company.
Miniso is one of many foreign companies to hit the Mexican stock markets recently. The company has seen huge growth in the last few years in Mexico, especially in Mexico City. A Bloomberg survey reported that 100 percent of analysts recommended investors to buy Miniso stocks.
BIVA CEO María Ariza told Milenio that “we work together to bring attractive offers to our country, particularly from international companies that have stood out for their innovative profile and high performance globally, companies like Miniso.”
Banorte and Colombian food delivery app Rappi partnered together on a initiative called “RappiContigo,” intended to offer financial aid to restaurants struggling as a result of the pandemic.
The initiative is a credit program with a total value of MX$250 million (US$12.7 million) that will be made available to restaurants that apply when the program opens on Jan. 25. Successful applicants could receive up to MX$1m million (US$50,841) in credit to be accompanied by preferential repayment rates and without an initial commission charge.
Both companies released a statement explaining that “this program seeks to benefit thousands of businesses with credits to continue their operation and thus prevent them from closing their doors permanently."
Rappi, like most other food delivery apps, has seen strong growth over the last year due to the closure of restaurants to seated customers during the first and second wave of lockdowns.