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.
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