Brazil to unveil $2bn ESG sovereign bonds in global sustainable finance push


The incumbent Brazilian government is poised to make a significant move in the world of sustainable finance.

The Brazilian government is set to issue sustainable sovereign bonds estimated at around $2bn. Details regarding specific investors or their commitments are currently undisclosed.

Brazil, known for its cultural heritage, diverse ecosystems, and economic prowess, has been a major player in global economics and politics. Governed by a democratic system, the nation’s leadership seeks opportunities to develop its infrastructure, support environmental sustainability, and ensure financial stability.

This significant funding through sustainable bonds aims to back green and social projects. The intention, as expressed by officials, is to serve as a foundational financing base for Brazil’s ecological transition plan.

On the legislative front, the National Monetary Council (CMN) – Brazil’s premier economic body, which includes key members like the finance minister, planning minister, and the central bank governor – introduced a new framework in line with the Climate Fund. This framework, effective from September, outlines loan return rates. Moreover, it emphasizes that funds will be directed towards projects and capacities that aim to reduce greenhouse gas emissions and adjust to climate impacts.

Rafael Dubeux, an integral part of the Finance Ministry’s ecological transformation strategy, unveiled that the initial allocation of these bonds will majorly support the Climate Fund, supervised by the state development bank, BNDES. Furthermore, the bond issuance aligns with President Luiz Inacio Lula da Silva’s wider green initiative, which encompasses the creation of a regulated carbon credit market.

Dario Durigan, the ministry’s executive secretary, shared his optimism, “In the upcoming month, the world will be closely observing and acquiring our sustainable bonds.” He also emphasized the significance of this move, stating, “The expectation that we have in the Nation Treasury is that we issue something around $2 billion. It is a very relevant amount, it will be able to serve as a financing base for the ecological transition plan.”

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