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Investor Presentaiton

7 The SSLB Bond pioneered an alternative approach for sustainability-linked debt financing Uruguay implemented an innovative financing mechanism that linked the country's cost of capital to its delivery of ambitious climate and nature goals. Introduced an interest rate structure for SSLBs that features a potential coupon adjustment (increase, constant or decrease), depending on whether the country fails to meet, delivers, or overperforms on its SPTs, respectively. Embedding better-aligned financial incentives in sovereign fixed- income instruments can achieve the integration of nature and climate considerations into sovereign debt markets, providing positive incentives for countries to contribute to global public goods. 37
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