The ecosystem growing around sustainable funds offers a source of financing for companies in the region, which may help international and local investors to develop their own sustainability agenda with transactions classified as impact investments in their portfolios.
Financial institutions have a critical role to play in the process of decarbonizing economies. Without their help, it will be impossible to finance the estimated $1.5 trillion (equivalent to 5% of the global GDP) needed to transition towards a green economy.
In recent years, financial authorities across the globe have been looking at ways to move away from the Libor reference rate, and multiple solutions have been proposed. A switch to the more reliable SOFR rate is in the works and will be completed by June 2023.
Open banking, allowing third-party service providers to access financial data from financial institutions through APIs, is growing rapidly thanks to secular global trends and the region’s thirst for innovation.
So-called “patient” capital supports the expansion of mid-market enterprises, driving job creation and supporting modernization. It’s now becoming a fixture of private capital investment, which is soaring in the region as investors seek alternatives to the low returns typical of fixed-income assets.
Environmental, Social and Corporate Governance (ESG) factors have evolved from externalities to key components of business models, and integral elements of corporate strategies.