The past five years have seen a significant increase in investors’ ESG awareness. While Green bonds have been gathering plenty of attention, some new types of ESG-related bonds came to the forefront, such as sustainability-linked bonds, which put in focus the sustainability performance of the issuer.
Emerging markets have been part of this development, with well-known Brazilian corporates leading the way. Strong demand at auction highlighted the increasing appeal of this kind of instrument, along with higher yielding credits.
In this note, we try to find quality bonds with attractive yields in the ESG emerging market space.