Scotiabank Mexico launched a MXN-denominated structured note linked to IndexAmericas, a corporate sustainability index developed by the Inter-American Development Bank (IDB). The groundbreaking index, developed by the IDB and structured and commercialized by BNP Paribas, 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).
A portion of the revenues generated through the note will be channeled to the IDB to support sustainable development activities in LAC. The innovative index is the first of its kind created by a multilateral development bank and the first in LAC to be fully aligned with the United Nations Sustainable Development Goals. It is the result of a partnership with S-Network Global Indexes and is designed using data provided by Refinitiv. It also received academic support from the Earth Institute at Columbia University. The transaction is the result of a collaborative initiative by BNP Paribas and Scotiabank to bring the index to the Mexican market.
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“At the IDB, we believe that advancing sustainable development and stimulating a post-pandemic recovery requires our collective effort and increased participation from the private sector. The launch of this structured note reflects the financial industry’s growing commitment to sustainability and their recognition of Latin America and the Caribbean as a strategic region for investment,” remarked President Mauricio Claver-Carone of the IDB.
BNP Paribas Sales and Structuring built a tailor-made version of the original IndexAmericas to meet Scotiabank’s specific needs for the Mexican market and bring efficient diversification to their clientele through this unique investment solution.
“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.
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“We are honored to serve as issuer and placement agent of this structured note in partnership with BNP Paribas and the IDB. With this innovative product we strengthen our commitment to environmental sustainability and to building economic resilience among the communities where we operate so we can help them become better off creating more opportunities for the upcoming generations,” said Adrian Otero, CEO, Scotiabank in Mexico.
The IndexAmericas initiative was created in 2017 to celebrate corporate sustainability champions operating in the LAC region and to further incentivize corporate commitments to ESG issues and sustainable development efforts. To date, IndexAmericas has issued several editions of the Top 100 index, which recognizes the 100 most sustainable global firms operating in LAC. It has also published a gender index showcasing those firms that are leaders in advancing gender equality, as well as multiple iterations of a Multilatinas index that celebrates leading LAC-based firms based on their ESG and sustainable development performance. IndexAmericas has also worked with stock exchanges in LAC to develop national-level indices of their own based on its unique, proprietary methodology.
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