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International Newsletter – Uruguay – Sustainable Bond Framework

The Uruguayan Administration has recently published the new Reference Framework for Uruguay’s potential issuance of Bonds Indexed to Climate Change Indicators (BIICC). This Framework aligns with the five main components of ICMA’s Sustainability-Linked Bond Principles 2020. The Framework for BIICC issuance is the keystone for Uruguay’s access to the sustainable sovereign financing market, seeking to become a pioneer in sustainability-linked debt financing in Latam. Uruguay seeks to implement a symmetrical structure of rate rewards and penalties, linking the country’s cost of capital to the achievement of its climate and nature conservation goals (set out in the Paris Agreement on climate change). There is an intention to focus sustainable finance on achieving specific, material and visible climate performance targets, anchored in a robust verification system, and driven by the actions and policies needed to meet them. This approach generates greater government accountability for climate action and its associated outcomes, integrating the country’s environmental agenda and promoting shared global public goods. The Inter-American Development Bank and the United Nations Development Program provided key technical assistance for this project, which was jointly developed by the Ministry of Economy and Finance, the Ministry of Environment, the Ministry of Industry, Energy and Mining, and the Ministry of Livestock, Agriculture and Fisheries, with the support of the Ministry of Foreign Affairs. ________________ The above communication has been prepared just for information purposes. It cannot be construed as legal advice provided by Bergstein Abogados. Should you have any further questions, please feel free to contact Maite Urrecheaga ( and/or Leonardo Melos (