Thematic bonds are an option for retail investors when building their portfolios and, in addition to seeking returns, they will be contributing to environmental and social improvements.

Mexico City, March 18, 2024. In recent years, in the Mexican stock market, thematic bonds have become popular as a debt instrument that seeks to raise resources that are subsequently allocated to projects that positively impact the environment and society. . Thus, the company that issues them, through an intermediary, must comply with key sustainable performance indicators to maintain the benefit in the interest rate from the debt issuance.

At the end of May 2023, the Mexican Stock Exchange recorded total financing of $223 billion pesos in the issuance of thematic bonds, recorded since 2016. Today these issues represent just over 40% of total long-term debt.

In a market where more than 50% of Mexican consumers have reducing their environmental impact as one of their main concerns (Kantar, 2022), and where there are around 4 million retail investor accounts (AMIB, 2022), the existence of This type of instrument not only diversifies the stock market, but also responds to the demands of a public that is increasingly aware of the impact of its purchasing and investment decisions.

This is clearly benefited by the boom in investment platforms, which have not only democratized the stock market to give consumers the power to invest in the brands they trust the most, but also giving them the power to invest in the brands. that agree with their values ​​and principles.

 An example of a successful issuance by a brand with deep roots in Mexican culture, but also with a proven track record in sustainability, is the Grupo Herdez Sustainability Linked Bond for 2022, which is committed to reducing the water consumption per ton produced by the company, by 2030.

This issue was 3.9x oversubscribed, evidencing investor confidence in the solidity of the food company. With this placement, the Company positioned itself as the first issuer in the food sector to issue a Bond Linked to Sustainability and joined the pioneering group of companies that have issued thematic bonds in the Mexican stock market.

Without a doubt, it is essential that investors consider the importance of consuming and investing consciously and responsibly, taking into account the impact of their financial decisions on the environment and society. Some aspects for investors to take into account are that the predefined rate of bonds linked to sustainability may increase or decrease based on compliance with the goals defined for each issue. That is, if the station does not meet the KPI, the investor will receive more interest.

However, opting for bonds linked to sustainability not only represents an opportunity to seek returns, but also to actively contribute to the preservation and efficient use of natural resources or contribute to social causes. In order to invest in this type of instruments, it is advisable to investigate the sustainability metrics and results of the issuers in their annual or sustainability reports, so that there is greater reference, as well as approaching your brokerage house or stock broker to find out. how to invest in them.