Do you think the human rights issue will have a negative impact on issuing these bonds succesfully?
I’m hearing people only talking about human rights. If human rights are not taken care of, human rights of the gang members, then a lot of institutional investors won’t invest due to ESG concerns.
What do you think?
I think the first $1B tranche will be eaten up without the aid of institutions. The following tranches will need large investors though, and this might be China, crypto exchanges that want to list them, or who knows, maybe nobody, but if the demand isn't there, they'll stop issuing them.
Human rights is the big topic for sure. I'm uncertain El Salvador would've been ESG compliant even before the gang crackdowns. Time could solve some of these problems if the crackdowns show marked improvement in quality of life and GDP. Already crime in El Salvador has collapsed. It's a long-term project.
reply