Are social bonds the answer to Latin America’s liquidity needs?

Social bonds allocated to environmental, social and governance (ESG) assets were a relatively new phenomenon in Latin America prior to the covid-19 crisis. But as states, quasi-sovereigns and corporates scramble to shore up their finances in the wake of the pandemic, social bonds could present a much-needed source of liquidity. New York-based Linklaters counsel Alejandro Gordano weighs up the pros and cons of the novel financing instrument.