The aim of this report is to study, from the governance perspective, the growing use of environmental, social and governance (ESG) bonds, and in particular sustainability-linked bonds (SLBs), by Latin American and Caribbean corporate issuers in international markets. Focusing on corporate sector sustainability performance, the report examines the potential of these instruments as a source of financing for investment projects and their role in strengthening companies’ governance structures. It also analyses how these instruments can contribute to sustainable recovery in the region, taking into consideration the commitments to reduce climate risks in line with the Paris Agreement and the twenty-sixth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 26), and the implementation of the 2030 Agenda and the Sustainable Development Goals (SDGs).