Brazil Aims To Raise $2Bn In ESG Sovereign Bonds In September –Official

  • Brazil has announced plans to release approximately $2 billion in its first sustainable sovereign bonds this September, a significant move towards eco-friendly financing.
  • Dario Durigan, the executive secretary of the Finance Ministry, stated, "In the upcoming month, the world will be closely observing and acquiring our sustainable bonds." He made this remark during a session of the country's Climate Fund committee, highlighting that these bonds will be backed by green and social projects.
  • "The expectation that we have in the Nation Treasury is that we issue something around $2Bn. It is a very relevant amount, it will be able to serve as a financing base for the ecological transition plan."
  • Durigan said that during a meeting later on Thursday of the National Monetary Council (CMN) - Brazil's top economic body comprising the finance minister, planning minister and central bank governor - the government will greenlight the issuance of the country's first sustainable sovereign bonds and will define a new framework that will govern Climate Fund operations.
  • In an interview with Reuters last week, Rafael Dubeux, who is coordinating efforts in the Finance Ministry's "ecological transformation" plan, disclosed that the initial allocation of Brazil's inaugural sustainable sovereign bonds will primarily benefit the Climate Fund under the oversight of the state development bank BNDES, aiming to finance actions to reduce emissions effectively.
  • The bonds are part of President Luiz Inacio Lula da Silva's efforts to improve Brazil's record on the environment in a broad green plan that includes the establishment of a regulated carbon credit market.
  • Brazil's ambitious step towards sustainable bonds underscores its commitment to environmental preservation and ecological transition. By tying financial mechanisms with green initiatives, Brazil not only sets a precedent for emerging economies but also reaffirms its dedication to global environmental objectives.

(Source: Reuters)