Peru’s Development Finance Corporation (Cofide) on Monday conducted the traditional Lima Stock Exchange (BVL) bell-ringing ceremony to mark the issuance of its inaugural green bond —worth S/100 million (about US$30.3 million)— with three years of maturity and a 5.125% interest rate.
The issuance, aimed at funding environmental projects, was launched within the framework of the Fifth Representative Debt Instruments Issuance Program, it explained.
Cofide’s green bond enjoyed strong demand from institutional investors such as private pension funds or AFPs (80.5% of the total), mutual funds (7.3%), brokerage houses (6%), public sector’s issuers (4%), and insurance companies (2%), achieving a (1.41-time) demand of S/140.5 million (around US$42.5 million).
Cofide was the structuring and placement agent to the issue auctioned on April 25.
On the matter, Cofide General Manager Alex Zimmermann said this is “the first (green) bond issued by a financial entity in Peru” and that “projects will be assessed once a year to ensure that sustainable standards are maintained.”
“This issue is a milestone in Peruvian market’s efforts to counteract the effects of climate change. The BVL started this process a year ago with the publication of the Green Bonds Guide, which set the tone for responsible financing,” said Francis Stenning, general manager at the Lima Stock Exchange (BVL).
“Cofide is the first finance corporation that issues green bonds and the second issuer of these instruments. This might be in line with a market trend that is becoming a reality,” he added.