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Tressis: “The green bond typology invites us to think that not all of them can be ESG”

Date: October 4, 2023 Time: 18:50:44

Green financing is not a label or paper, it has a strategy behind it. This has been one of the main ideas that have been debated in the paper ‘The new environment of fixed income and business financing’, within the framework of the Medcap forum. A premise against which from Tressis, the director of fixed income and structured, Gonzalo Ramírez, has argued that the very typology of the market “invites us to think that not all bonds can be framed within the ESG”, since there are sectors that are they are left out Among them he has highlighted the arms industry, a situation in which he defends that there is “a long way” to go in this area.

“Many times when you go to invest in ESG bonds the spreads are narrower. There is still a long way to go but we value the great diversification,” he pointed out. In this line, the general director of fixed income at BME, Gonzalo Gómez Retuerto, has defended that although sustainable financing comes “naturally”, this must be the strategic axis of all companies. Thus, he is convinced that it will continue to grow progressively.

Gómez Retuerto took advantage of his speech to also highlight securitization funds, which represent a financing faucet for SMEs and micro-SMEs, which is why, in his opinion, these vehicles play a “fundamental” role in the capital market, despite the fact that It was sometimes “demonized”, as happened with the 2008 crisis in the United States. Despite this, he regrets that the real impact they have on the real economy is unknown.

In this sense, the director of corporate and institutional financing of the ICO, Enrique Blanco, has valued the Aachen project, which manages a securitization fund and sells long-term bonds on the Alternative Fixed Income Market (MARF), at the same time that he has highlighted that the initiative “has worked very well” and that it is a system that can be exported to other products. To the son of said program, the financial director of Tubacex, Guillermo Ruiz-Longarte, has mentioned the promissory note plan for 200 million that they launched in the MARF and that they have recently linked to sustainability objectives. “What we called alternative financing has become structural. It is very important that the issuer provide a lot of security in the MARF”, he pointed out.

The moment of fixed income

On this matter, Ramírez (Tressis) believes that inflation is already showing signs of falling as a result of the latest CPI data from the main eurozone economies that have been published in recent days and assures that it is time to bet on this market. Ramírez emphasizes the returns it offers and opts for short duration tranches. Retuerto agrees with him, who gives the example of the success of MARF, despite the fact that the scenario has changed and financing costs have risen above what the client had become accustomed to. “It’s time to build fixed-income portfolios,” he says.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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