SVS Bonds Market in Argentina: Evolution and Development Prospects
Abstract
This article focusses on the green, social and sustainable (GSS) bond market in Argentina. Since its inception in 2019 under the umbrella of BYMA, the GSS bond market has grown in a volatile manner, with a volume of cumulative emissions over USD 2 billion. This work surveys its evolution and perspectives for development, drawing on interviews to the main actors. The GSS bond market has allowed access to finance to actors tradition ally excluded from the financial sector, such as NGOs or SMEs. Public policies have reduced the cost of access by fostering competition and including new actors in key roles, such as new rating agencies. Financing of previously excluded actors has generated an “imitation effect” and stimulated new bond issuances. However, self-exclusion remains one of the main obstacles for the development of this market, partly because of lack of knowledge, and partly because of informality issues. Macroeconomic vola tility is the major obstacle for the supply of finance.
