Asuncion, IP Agency.- The Development Finance Agency (AFD) carried out its second issue of SDG Bonds – Sustainable Development Goals, for a value of ₲ 100,000 million.
The funds obtained from this issue will be used to finance programs in the housing, education and green projects sectors, which are expanding sectors that will now have an additional boost for their development.
Projects financed with SDG Bond resources are expected to contribute to reducing the housing deficit, mitigating environmental gaps and reducing greenhouse gases in Paraguay.
These funds will also boost job creation and strengthen credit lines and financial instruments, contributing to the country’s sustainable and economic development.
This issue was carried out under the AFD Sustainable Bond Framework and the Global Issuance Program of Sustainable Development Goals Bonds for the year 2024, registered with the Superintendency of Securities of the Central Bank of Paraguay for a total amount of ₲ 500,000 million.
Last December, the AFD became the first public institution in the country to issue this type of instrument locally, positioning itself as a benchmark in the Paraguayan financial market.
The recent issue, carried out through the Asunción Stock Exchange (BVA), managed to place 100% of the offer, with a term of 4 years, with semi-annual interest amortization and capital at maturity.
The bonds issued offer a variable interest rate indexed to inflation (annual CPI + Fixed Premium 1%), which constitutes an attractive factor, as the performance of the instrument is adjusted according to the consumer price index, thus protecting the purchasing power of the investment and ensuring a positive real return even in inflationary environments.
It is important to note the security of the securities issued by the AFD, since these dematerialized bonds are backed by the guarantee of the Public Treasury, unlike other investment securities on the stock market.
With this type of issuance, AFD reaffirms its commitment to sustainable development and its crucial role in boosting the Paraguayan economy, encouraging investment in strategic sectors and contributing significantly to the social and environmental well-being of Paraguay.
Since its first issuance of SDG Bonds in December 2023, worth 100 billion guaraníes, AFD has executed 91% of these resources until June 2024, benefiting key sectors such as forestry, housing and education projects through 328 credit operations, generating more than 3,400 jobs and 14 departments in the country.
AFD has a Risk Rating of “AAA” with a Stable Trend from Solventa and “BB” with a stable trend from S&P, in addition to having recently obtained the investment grade rating “Baa3” with a stable trend from Moody’s, highlighting its financial strength and commitment to transparency and sustainability.
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2024-08-04 20:34:03
