The Stock Exchange BYMA from Argentina announced the incorporation of the first sustainability-linked bond (SLB) issued by Red Surcos S.A., an Argentine company dedicated to the development, production and marketing of supplies for the agricultural sector, mainly phytosanitary products such as herbicides, insecticides and fungicides.

This is a Class VIII Simple Negotiable Obligation, in the amount of US$20 million. The issuance is aligned with the ICMA (International Capital Market Association) Sustainability-Linked Bond Principles.

The particular bond issue has a sustainability performance target of 35% growth in the number of liters sold of nano herbicides (Elite line). According to the External Review report, the formulation of Elite herbicides based on the application of nanotechnology reduces the environmental impact ratio versus traditional herbicides, and addresses 3 of the 12 principles of Green Chemistry.

The structure of the bond has a contingent interest rate, which consists of an increase in the cut-off rate defined in the bid of 1% (100 basis points), in the event that the target is not met. The compliance date of the sustainability performance target will be August 31, 2023. Within 90 calendar days after the target compliance date, the issuer must publish the compliance notice which will be accompanied by a report issued by an auditor confirming such compliance.