Haddad: Interest rates in the US make it difficult to issue sustainable bonds – 11/10/2023 – Market

The Minister of Finance, Fernando Haddad, stated this Friday (10) that the higher level of interest rates in the United States creates difficulties for the issuance of sovereign bonds from other countries, pointing out a challenging international scenario for the launch of sustainable securities by the Brazilian government.

Speaking at the Legal Amazon Governors Forum, in virtual participation, Haddad stated that the National Treasury will make its first issuance of bonds linked to sustainability commitments when it considers the economic environment opportune.

“(Brazil’s sustainable bonds) will be issued as soon as the Treasury considers the first issuance opportune due to an external scenario, which is currently very challenging,” he said.

“Everyone is following the evolution of interest rates in the United States, which are currently preventing us from placing sovereign bonds from developing countries at lower rates. We are waiting for the best time to launch sustainable sovereign bonds,” he added.

The issuance is one of the axes of the federal government’s green agenda, which in addition to raising resources, initially estimated at US$2 billion (R$9.97 billion) for the first issuance, seeks to create a reference for the launch of bonds of this type. type by the private sector.

At the meeting, Haddad stated that the Tax Reform approved by the Senate this week deserves praise, although it can still be improved in the “near future”, highlighting that the proposal creates incentives for the production of sustainable goods.

The minister also said that Brazil “lagged behind” in discussions about the carbon market, but that the issue is now progressing in a project being processed in Congress with government support.

He emphasized that Brazil, at the helm of the G20, intends to put sustainability “on the agenda”, demanding the transfer of resources from developed countries to emerging countries, in addition to proposing the creation of new financial instruments that encourage green investments.