Financing for "Green" Projects

The Costa Rican Stock Exchange is preparing a bond plan for companies that seek to finance renewable energy, agriculture, and waste management projects, among others.

Monday, January 8, 2018

The aim of the authorities at the National Securities Exchange (BNV), is to have the first issue of bonds of this type ready in the last quarter of 2018. The plan is to provide financing alternatives through the stock market for projects   "... new or existing ones that qualify as green projects, that is to say, that contribute to mitigating the effects of climate change or adapting to them."

José Rafael Brenes, general director of the BNV, explained to Nacion.com that  "...Projects related to renewable energy, energy efficiency, clean transport, water resources management, waste management, agriculture, IT and broadband are some of those that can be financed using these instruments."

In the view of Victor Chacón, director of the Chamber of Investment Funds, "... despite being an interesting proposal as an instrument, it will only be attractive if the rate offered by them is profitable for the terms that are issued and if the issuer has a good rating and backing."

More on this topic

Stock Market at a Disadvantage

August 2018

The new tax reform proposal being discussed in Costa Rica raises capital gains tax from 8% to 15%, and also excludes recognising as a debt deposits made by issuers in the securities market.

In the view of the National Stock Exchange (BNV), not recognizing deposits made in the stock market as debt leaves it at a clear disadvantage, compared to banks, as a source of financing for companies. Not only does it compromise access to investors' savings, it also significantly limits companies and individuals investment options.

Costa Rica: Prices Drop for Foreign Debt Bonds

November 2016

The "Trump effect", added to the upward pressure caused by inflation in US interest rates, explains the upward trend in the performance of Costa Rican bonds and the fall in their price.

A resumption of the upward trend seen in debt securities traded on the international market could make it difficult for the government access external financing, in a context in which most bonds from emerging market countries are experiencing the same situation. If the government decides to resort to financing in the international market, the cost of doing so would be higher if bond yields continue to rise.

Costa Rica: Backwards Step in Opening of Stock Market

April 2014

The proposal to create a market for direct trading of securities has been rejected by the authorities, yielding to pressure from industry participants themselves.

Although the World Bank itself proposed analyzing the creation of a market where investors could directly buy and sell securities, the government bowed to pressure from the National Stock Exchange and stock brokers, and chose not to include the proposal in the initiative for modernization of the Law Regulating the Securities Market.

Changes Ahead for Costa Rican Stock Market

September 2013

The Superintendency of Securities projects there will be adjustments to regulations on investment funds, IPO, market intermediaries and infrastructure.

Elfinancierocr.com reports that "... the changes have goals such as modernizing the market, trying to make it more dynamic and giving appropriate treatment or investor protection."

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