Through the financing obtained in green bonds, credits can be granted for projects that contribute to the environment.
It has been more than 13 years since green bonds made their appearance in the world. It was through the World Bank that the first of this was issued with the aim of financing climate projects.
Due to the global dynamics of caring for the environment, the effects of which have been evident in recent years, the spaces that allow resources to be allocated through banking to this type of products are growing more and more.
The World Bank explains that the bonds are “an arrangement whereby issuers borrow funds from investors and must repay those funds at an agreed rate after a specified term. Governments, companies and many other entities issue bonds to obtain financing for projects ”.
Banco Pichincha issued green bonds for $ 150 million
Ecuador joined this wave with Banco Pichincha being the first institution to issue green bonds for $ 150 million. The process had been endorsed by the Superintendencies of Banks and Companies, Securities and Insurance.
In a report, until last June, the financial institution had indicated that with the first bond issue there were 30,335 people of which 153’207,210.69 dollars were disbursed, being the projects in the sustainable construction category the ones that received the most money spent with more than 96 million dollars, followed by those that entered the energy efficiency category with more than 48 million dollars.
How do green bonds work?
The main operation is as follows, banks issue bonds in the stock market that may be acquired by investors, whether national or foreign, the amounts collected will allow the financial institution to allocate those amounts in credit products to its clients, without However, the projects that are financed must be framed in a positive environmental impact.
“This system can only generate a win-win relationship: it is financing that generates a favorable social and environmental effect. In addition, it injects dollars into the post-pandemic economy in the country, while generating value through the positive impact for the international investor and for the Ecuadorian bank, ”said Daniel Ortega, director of the Public Policy Center of the Escuela Superior Politécnica del Coast (Espol).
At least five financial entities in the country provide credit lines to finance green projects, in the same way vehicles can be purchased. (I)
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