Latin Finance names BNP Paribas Sustainable Finance Bank of the Year

The magazine recognizes the bank for second consecutive year as innovative leader

BNP Paribas was named Sustainable Finance Bank of the Year by LatinFinance, a leading source of intelligence on the financial markets and economies of Latin America and the Caribbean. The LatinFinance 2021 Banks of the Year Awards honor Latin America’s financial institutions in retail, commercial and investment services over the past year.

The second year in a row the Bank has achieved this distinction, the award reflects BNP Paribas’ continued leadership in promoting sustainable finance solutions across Latin America. Corporate and institutional clients in the region have trusted BNP Paribas to develop innovative financing solutions that meet today’s challenges, including coping with the effects of the pandemic, combatting the impact of climate change and expanding commitments to social and economic inclusion.

“We are delighted to have again received this honor from LatinFinance,” said Florence Pourchet, Head of CIB Latin America and Head of CSR Americas at BNP Paribas. “Sustainability will be central to the economic recovery from the pandemic, and our teams have worked hard to develop solutions that help our clients meet their sustainability ambitions and make a positive impact across the region. This award is also a testament to our clients, who have taken the initiative to embed sustainability in their businesses and have allowed us to accompany them in their journeys.”

This award is also a testament to our clients, who have taken the initiative to embed sustainability in their businesses and have allowed us to accompany them in their journeys.

Florence Pourchet, Head of CIB Latin America and Head of CSR Americas at BNP Paribas

The award follows similar honours from Euromoney, which named BNP Paribas “World’s Best Bank for Sustainable Finance” in its 2021 Global Awards and highlights the Bank’s global commitments to a responsible transition.

Helping institutions and sovereigns expand their reach

LatinFinance recognized BNP Paribas’ leadership in developing innovative financing solutions to support our clients in the region as they transition to more sustainable business models, and help governments progress toward achieving the United Nations’ Sustainable Development Goals.

In January 2021, BNP Paribas supported IDB Invest, the private-sector arm of the Inter-American Development Bank, on its debut Sustainable Debt Securities program, using a first-of-its-kind sustainability debt framework for issuing green, social and sustainability bonds. Totaling $1 billion, the five-year offering will promote economic relief throughout Latin America and the Caribbean as well as funding to improve access to essential services, socioeconomic advancement, sustainable food systems, water and wastewater management and clean transportation.

Additionally, BNP Paribas built a tailor-made version of the original IndexAmericas to meet Scotiabank’s specific needs for the Mexican market. Rather than focusing on Latin America-based companies only, IndexAmericas Top 50 features 50 publicly listed US companies with a sizeable footprint in the LAC market and strong commitments to both ESG issues and sustainable development in the region. The unique approach allows for a complete view of the companies’ performance as corporate citizens – how they meet ESG standards and how they help generate global socio-economic value.

BNP Paribas supported the Republic of Chile’s dual-currency green and social bond issuances in January 2021. The first was a dual-tranche EUR bond offering consisting of a €400 million tap of their existing 0.83% green bond due 2031, along with a new €1.25 billion 30-yr social bond due 2051. The second was a dual-tranche bond offering consisting of a $750 million tap of their existing 2.55% green bond due 2032 and a new $1.5 billion 40-yr social bond due 2061. Chile is the first sovereign in the world that has executed a multi-tranche, dual-currency, dual-ESG label (green/social) transaction.

Finally in October 2021, the Republic of Peru launched its very first Sustainable Bond under its new Sustainable Bond Framework. The proceeds will fund 2021 and 2022 social projects outlined in the Sustainable Bond Framework that will help advance the United Nations Sustainable Development Goals in the country. BNP Paribas supported Peru’s debut in the sustainable capital markets, a $4 billion transaction consisting of a new 12-year Sustainable Bond, a Tap of 2051s and a new 50-year Sustainable Bond.

Advising corporate clients on their sustainability journeys

Latin America’s largest e-business by market cap, e-commerce tech provider MercadoLibre, put societal and environmental issues front and center with its inaugural $1.1 billion debt issue in January 2021. The sustainable finance deal had a triple impact across green transportation, financial inclusion and support for microfinance in various Latin America countries. Specifically, the initiative features both 10-year refinancing and 5-year sustainable financing notes for eligible environmental and social projects, including financing/lines of credit to micro businesses in countries like Brazil, Mexico and Argentina; third-party financing for battery-powered vehicle and charging-station development; and teaming up with conservation experts to help regenerate biomes.

In January 2021, Grupo Andre Amaggi issued a $750 million Sustainability Bond. This was Amaggi’s debut issuance in the USD market and proceeds will be used to finance/refinance green and social projects of the company.

These are only a few examples of how BNP Paribas has collaborated with clients to bring sustainable financing solutions across the Latin America market. With over 100 years of presence in the region, BNP Paribas remains focused on working with stakeholders to find new and creative ways to promote sustainable development in Latin America.