Small but powerful: Sustainability-linked bonds in emerging markets

Chile and Uruguay

clock • 4 min read

Behind all the doom and gloom, some positive trends are taking place in bond markets.

Towards the end of 2022, Uruguay became the second emerging market sovereign to issue a sustainability-linked bond, following Chile earlier in the year. This is part of a wider trend that is seeing emerging markets lead the way on innovation in the field of green, social, sustainable and sustainability-linked bonds (GSSS bonds). Given the vast sums of capital needed by EMs to finance the energy transition, this is an area of the bond market where the needs are greatest. Best bond buys after 2022 bear collapse The GSSS bond market has real potential to spur funding for sustainabl...

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