Pension funds, insurance companies, asset managers and investment funds all back green bonds in public decalaration, sponsored by the Mexican Stock Exchange, (BMV), MÉXICO2 and the Climate Bonds Initiative.
The Mexico Green Bonds Investor Statement is a significant step forward for green finance in LATAM.
What's it all about
Yesterday in Mexico City, 57 institutional investors, with over USD 213.8bn (4 trillion pesos) in AUM released a statement in favor of financing green bonds in Mexico.
The statement stresses that green bonds offer an opportunity for institutional investors to comply with their fiduciary duties with clients and beneficiaries in a responsible and sustainable manner.
The 57 signatories including pension funds, insurance companies, multilateral development banks, investment funds and independent investment advisors, acknowledge in the document that climate change represents a crucial risk for society, the economy and their long-term investments.
They also recognize that low carbon projects (required for taking action on climate change) can be structured as investment assets that offer levels of yield and risk, satisfying the investment needs they pursue on behalf of their clients and beneficiaries.
Who's saying what
José Oriol Bosch, CEO of the Mexican Stock Exchange
“This document demonstrates the desire on behalf of investors to have access to more green bond issuances and it paves the way to face one of the most important challenges for Mexico and the world: climate change”.
Javier Bernal Stoopen, Head of Institutional Sales for Grupo Financiero Monex (and General Counselor for the Mexican Climate Finance Advisory Board):
“Mexico is the fifth largest emerging economy after China, Brazil, Russia and India; this statement on the destination of proceeds for projects that, besides being profitable contribute to the fight against climate change, is an encouraging message that reflects the growing maturity and responsibility in portfolio management in order to mitigate these risks”.
Alejandro Elizondo, Executive Director of Investments, Seguros Monterrey New York Life:
"For us it is very important to be part of this initiative that sets a precedent in Mexico regarding the care and preservation of the environment. Moreover, this event represents yet another step that allows us to continue to protect the Mexican people and direct the country towards a more sustainable future”.
Sean Kidney, the CEO of Climate Bonds Initiative:
“The strong response of investors to this statement is a positive milestone for Mexico; it is a show of enormous confidence in the green bonds market”.
The last word
This statement, one of the most significant globally by volume of assets represented, stresses that green bonds offer an opportunity for institutional investors to comply with their fiduciary duties with clients and beneficiaries in a responsible and sustainable manner.
We want to see more of this; investors joining together, publicly calling on issuers for more green bonds.
Muy bien, Mexico!
P.S: You can read this blog in Spanish here. And more about the Mexico CCFC (Climate Finance Advisory Board) and Mexico’s green bond market, here (Spanish).
And catch up on previous Mexico updates in English, here and here.
‘Till next time,
Climate Bonds
Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not endorsing, recommending or advising on the merits or otherwise of any investment or investment product and no information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment decision.
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