Banco de Ahorro y Crédito Fondesa, S.A. (Banfondesa) has issued the country’s fist sustainable bond as an investment alternative for pension funds. The issuance is valued at RD$500 million. The Presidency says this is a significant step for the Dominican Republic’s economy due to its widespread social impact.
The Risk Classification and Investment Limits Commission (CCRyLI) cleared the first sustainable bond issuance as an investment alternative for pension funds.
The Superintendency of Pensions (SIPEN) announced that Resolution No. 265 from CCRyLI cleared the public offering instrument for pension fund investments called the “Sustainable Bond Issuance Program” from Banco de Ahorro y Crédito Fondesa, S.A. (Banfondesa).
Francisco A. Torres, the Superintendent of Pensions, stated that pension funds can now invest in sustainable bonds, which will primarily contribute to job creation and support for small and medium-sized enterprises (SMEs), women-led businesses, entrepreneurs, students, green projects, and education initiatives.
“With this new investment alternative, we reaffirm SIPEN’s vision to promote responsible economic growth in the country, contributing to climate change mitigation and the creation of a more equitable society,” Torres said.
He highlighted that the issuance of these sustainable bonds will channel resources toward financing social projects, renewable energy, energy efficiency, green infrastructure, sustainable mobility, and pollution prevention and control.
Torres expressed hope that this type of financial instrument will continue to evolve and generate tangible benefits for affiliates and the nation as a whole.
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Presidency
25 September 2024