Mexico City, July 15, 2024 – Universidad Insurgentes (UIN), a leading higher education institution and part of Linzor Capital Partners’ portfolio, has successfully obtained an innovative sustainability-linked loan from Scotiabank México. This pioneering financial arrangement includes a loan and a financial derivative that offers economic incentives for meeting specific targets related to carbon emissions and gender equality.
With a 29-year history in the Mexican education market, UIN has long been dedicated to sustainability and social responsibility. Aligned with Linzor’s ESG (Environmental, Social, and Governance) investment strategy, UIN has been actively working to reduce its carbon footprint and promote female empowerment. The loan from Scotiabank will support these ongoing projects, reinforcing UIN’s commitment to achieving measurable outcomes in these critical areas.
Key Loan Terms and Benefits
- Interest Rate Reduction: UIN qualifies for a reduced interest rate as long as it achieves set targets, consisting of:
- An absolute reduction in greenhouse gas emissions (scope 1 and 2).
- Student participation in “Mujeres Líderes”, a certification program focused on gender equality and female empowerment. The curriculum was developed through a partnership with the NGO Dalia Empower and is sponsored by Santander, another financial institution in Mexico.
- Third-Party Review: An independent third party will review the tracked indicators to ensure compliance.
- Interest Rate Swap: The sustainability-linked incentive is structured as an interest rate swap, allowing UIN to manage floating rate risk by paying a fixed rate on the swap while benefiting from meeting the established targets.
Linzor’s Commitment to ESG and Impact Goals
This financing exemplifies UIN’s and other Linzor portfolio companies’ efforts to seize ESG and impact-related opportunities while mitigating environmental and social risks. All Linzor portfolio companies are required to develop and implement impact theses aligned with the UN Sustainable Development Goals.
Linzor’s portfolio, focused on education, healthcare, financial services, and digital transformation, carries ample impact potential given the deficits faced by Latin American countries in these sectors. Under Linzor’s leadership, the portfolio companies are also working to reduce their greenhouse gas emissions in line with the Paris Agreement and promoting gender diversity within their organizations.
Linzor is an active participant in the Principles for Responsible Investment, the Net Zero Asset Managers Initiative, and the ESG Data Convergence Initiative. The firm has received numerous accolades, including the 2024 LAVCA Gender & Diversity Award for its investment in Sies Salud and the 2023 Award for Best ESG Investment Fund: Emerging Markets (Private Markets) from ESG Investing.
For more information on Linzor’s impact and sustainability strategy, please refer to the annual report