Benefits of issuing green bonds

The issuance of green bonds helps finance initiatives that aim to create options for the fight for a sustainable future. Green bonds are one of the options that have been developed over time to preserve the environment.

What are green bonds?

A type of financing known as “green bonds” is aimed at promoting financial support for initiatives that promote environmental sustainability. Since they adhere to all international criteria for the use and application of natural resources, they are called “green”.

In essence, it is a contract that requires issuers to borrow money from investors and pay it back within a predetermined time frame at an agreed rate. In addition to the rewards they offer, they also provide investors with a direct way to get involved in the global fight against climate change, making them attractive to investors.

The World Bank responded to the demand of a group of Swedes who wanted to invest in initiatives that tackle problems related to global warming by issuing the first green bond in 2008.

CMI Energía participates in the issuance of green bonds

CMI stands out for its adherence to values ​​that guarantee the benefit of society in general. For this reason, CMI Energía has been in charge of numerous renewable energy generation projects in the Central American region for more than 25 years.

The issuance of green bonds was incorporated into the policies of the presidents of the corporation, Lisa Juan José Gutiérrez Mayorga and Juan Luis Bosch Gutiérrez, to create solutions that protect the environment. The company’s first transaction was completed as part of the centennial celebrations in 2021. The $700 million investment carried an interest rate of 6,250% and will mature in 2029.

What advantages can green bonds offer?

The main objective of green bonds is to finance initiatives that reduce greenhouse gas emissions. The main industries benefiting from these bonds are transportation (70%) and clean energy (20%), with the remaining industries including water, construction and industry, waste and pollution control, agriculture, and others.

The actions taken by CMI Energy to issue green bonds are consistent with its objectives to reduce GHG emissions while decarbonizing and diversifying the regional energy network in the nations in which it operates.

In this way, CMI Energía strengthens its investments and at the same time maintains its position as the main private provider of renewable energy in the area, while working for a sustainable future.

Carla Fowler

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