National Treasury raises US$2 billion by issuing ‘green bonds’ on the foreign market

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The value was informed by the Minister of Finance, Fernando Haddad. With resources obtained, the government must finance environmental and social development projects. This Monday (13), the National Treasury raised US$2 billion with the issuance of “green bonds” on the international market. “We achieved, in my opinion, a very impressive result, US$ 2 billion dollars were placed in sustainable bonds, the first time that Brazil has issued this type of bond”, informed the Minister of Finance, Fernando Haddad, to journalists. By issuing securities on the foreign market, the Brazilian government raises funds from foreign investors with the commitment to return the funds after a specified period and with the payment of interest. Green bonds: government launches unprecedented form of financing for environmental protection In the case of sustainable bonds, the amounts obtained from this issuance must be directed to environmental projects, such as promoting the Climate Fund, or to promote actions in the social area, such as initiatives to combat poverty. In a note, the Treasury informed that it is committed to allocating the resources raised following the following proportions: Between 50% and 60% in environmental actions; and Between 40% and 50% in social actions. The bonds, issued today in dollars, have a term of seven years – maturing in 2031. The rate of return for international investors will be 6.5% per year. According to the Treasury, 75% of investors purchasing ‘green bonds’ are from Europe and North America, and 25% from Latin America, including Brazil. This was the second bond issue on the international market this year. In April, the National Treasury raised US$2.25 billion by issuing external debt securities. Today’s issue, however, was the first Brazilian issue of so-called sustainable sovereign bonds, that is, intended to finance projects focused on the environment.

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