Sustainable bonds are a growing presence across Latin American cross-border issuers, and Fitch Ratings expects continued growth as market participants increase their awareness of and interest in Environmental, Social and Governance (ESG) factors. Sustainability-linked notes have been increasingly issued in Latin America since 2020, and the momentum of the Green, Social, Sustainability and Sustainability-linked (GSSS) market continues.
Sustainable bonds represented 5% of total Latin America nonfinancial corporate cross-border bond issuances during 2020 and 30% YTD through July 2021. Development of the GSSS bond market is required to maintain global consistency of information transparency, framework standardization, and taxonomic development and improvement. These factors have become priorities for the GSSS bond market. The financial market plays an important role in redirecting capital toward sustainable activities.