Casa Mendes Gonçalves

When we started looking at the structure of our financing, we realized we wanted to walk alongside ESG, as a guiding principle of our daily concerns and always present in our management.

In fact, when we talk about green financing, we usually talk about green bonds, the most sought-after product with the most issuances. Since we like to be disruptive, we looked at our projects and, within the refugee reception and integration program, we thought it made perfect sense to issue social bonds.

It was a path we were determined to take immediately, precisely because it was disruptive and innovative and also very promising, both internally and in terms of how we relate to our stakeholders and the communities we operate in.

An issuance like this indeed has many challenges. First, because the amount issued was relatively low for this type of financing. However, we managed to get CaixaBI and CGD to understand the importance of this issuance and embrace our initiative. Before we knew it, the challenge had become an opportunity.

Another significant challenge was building a sustainable financing framework, something we had never done before. That’s where KPMG made the difference by providing help and collaboration that allowed us to create a robust document fully aligned with our projects and goals.

The greatest opportunity lies in having achieved something no one had done in Portugal before: being the first Portuguese company to issue social bonds anchored in such an urgent and pressing theme for our country, thus being part of the solution and raising awareness. This kind of pioneering spirit gives us great satisfaction and pride.

After walking such a fascinating path and already tasting some success, we can only say there’s no reason for distrust. This will inevitably be the way forward.

Banks will increasingly select projects under ESG rules. Funds will be more concentrated here, as this is where the greatest availability of money will be. The ECB is framing its strategy in this direction. Naturally, there will still be funding outside ESG lines, but much more expensive.

Therefore, the best advice for Portuguese businesses is to start the journey because, despite potential difficulties, immediate victories are possible. Ultimately, they will be operating within ESG principles and that’s where the real solution lies.

It was undoubtedly an essential contribution. Working with KPMG ensured we had a fully structured framework faithful to Casa Mendes Gonçalves’ reality. We were very fortunate to have an incredible team supporting us.

In particular, I must express special appreciation for Pedro Cruz, João Torres, and Beatriz Soeiro. Individually and as a team, they were always ready and available, helping us with a level of rigor and professionalism that is truly commendable.

The truth is that, from the very first minute, KPMG believed in this issuance and in our strategy. They made a point of standing by us without hesitation, even though it involved a type of issuance that had never been done in Portugal.