New IDB Index encourages sustainability in Latin America

IDB IndexAmericas Top 50 tracks US companies driving responsible growth and sustainability in Latin America

CIB-New-IDB-Index-encourages-sustainability-in-Latin-America

Scotiabank Mexico in late April launched a Mexican peso-denominated structured note linked to IndexAmericas Top 50, a corporate sustainability index developed by the Inter-American Development Bank (IDB) and structured and commercialised by BNP Paribas. The groundbreaking index includes 50 US-listed companies with strong commitments to sustainable development and environmental, social and governance (ESG) issues, as well as a sizeable footprint in Latin America and the Caribbean (LAC).

IndexAmericas – the family of corporate sustainability indexes that produced the Top 50 – is the first index of its kind created by a multilateral development bank and the first in Latin America and the Caribbean to be fully aligned with the UN Sustainable Development Goals (SDGs). In keeping with its mission of improving lives, IDB will use a portion of the revenues generated through the note to support sustainable development activities. The note reflects how collaboration between the public and private sectors can foster sustainable development in the regions in which they operate.

Integrating the Sustainable Development Goals (SDGs)

IndexAmericas Top 50 specifically 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. This unique approach allows for a full assessment of companies’ performance as corporate citizens – how they meet established ESG standards and how they help generate global socio-economic value. The 188 key performance indicators used by IndexAmericas are linked to the UN SDGs and evaluate how companies help eliminate poverty by creating jobs, fostering inclusion and empowering and serving vulnerable communities in the region.  

This initiative reflects our global leadership in structured products and sustainable finance, as well as our continued commitment to the region

Florence Pourchet, Head of CIB Latin America and CSR Americas

The largest notional structured note in Latin America, the new product highlights the continued enthusiasm for innovative sustainable finance solutions in Latin America. It also reflects the strong partnership between three organisations that provided expertise and resources to bring the product to the Mexican market.

“We are proud to partner with Scotiabank and IDB on this initiative, which reflects our global leadership in structured products and sustainable finance, and it underscores our continued commitment to the region through our participation in the IDB’s Private Sector Partners Coalition,” said Florence Pourchet, Head of CIB Latin America and CSR Americas at BNP Paribas.

Partnership for Positive Impact

This note is the latest solution in which BNP Paribas has partnered with the IDB Group to support its mission. Earlier in April, the IDB issued a benchmark $4.25bn 5-year benchmark bond, its largest-ever USD 5-year fixed-rate benchmark. BNP Paribas and Scotiabank are also participants in IDB’s Private Sector Partners Coalition on the Future of Latin America and the Caribbean, a coalition of global corporations that have pledged to contribute to the region’s recovery from the COVID-19 pandemic.

CIB-Joseph-Malley

We are committed to supporting IDB’s vision for growth in Latin America and the Caribbean, connecting and collaborating with private-sector partners such as Scotiabank to provide innovative solutions that promote sustainable development in the region.

Joseph Malley, Head of Financial Institutions Coverage Americas

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

As the IDB and other multilateral development organisations explore new solutions to solve the most pressing challenges to their communities, collaboration with the private sector will continue to be key in addressing critical social, economic and environmental issues.

Suggested readings

Related solutions

Brio

This platform offers clients the ability to conceptualise and test their investment strategies before connecting with their sales representative to proceed to transaction, specifically for Delta One and Quantitative Investment Solutions (QIS).

Cortex Equities

By harnessing the power of innovation, we continue to drive digital transformation and strengthen our electronic offerings for our clients by taking an agile approach.

Cortex Equities Americas

Cortex Equities connects you to the deep global pools of BNP Paribas’ liquidity and our long-standing expertise to help you manage it.

Equity Derivatives

BNP Paribas has around 30 years of consistent experience in the equity derivatives market, and we are well-known for our capabilities in providing a comprehensive product range of diverse solutions across both flow and structured products. We are focused on designing new strategies and innovative solutions to meet all our clients’ demands.

Smart Derivatives

SMART Derivatives is our cutting edge platform providing full integrated services from marketing, primary and secondary trading, to post-trade information on structured products, built around 3 interactive and complementary applications.