To reinforce commitment to the environment, Treasury should issue green bonds still in 2023, says secretary

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Green bonds are debt instruments issued by the government or companies to finance projects related to the environmental agenda. The objective is also to attract foreign investors. The Secretary of the National Treasury, Rogério Ceron, said this Thursday (26th) that the federal government intends to issue a green foreign debt bond this year. If confirmed, it will be the debut of the National Treasury in the green public bond market. It will also be the first issue of a foreign debt bond since July 2021. Green bonds are debt instruments issued to finance projects related to the environmental agenda. They can be issued by both companies and governments. “The best moment and the characteristics will be defined throughout the year, but the Treasury is indeed preparing to place these bonds [públicos verdes] still in 2023 [no mercado]”, said Ceron, during an interview about the result of the public debt for 2022. According to the secretary, the idea is that the bonds finance projects or programs related to the environmental agenda, the energy transition, the transition to green industry and sustainable agriculture. In in a second moment, the issuances can be extended to other projects, such as social ones. private green bonds, especially in relation to which interest rate to practice; and attracting foreign investors to purchase bonds issued by Brazil. the Brazilian environmental commitment is becoming concrete, because these captures are linked to an agenda”, explained Cero n. “All of this is putting Brazil back on the international stage and, to some extent, contributing to the return of non-residents, which is so healthy for our debt financing”, he added. In 2022, the federal public debt grew by 6.02% and ended the year at R$5.951 trillion. According to Treasury data, only 9.36% of the internal federal public debt is in the hands of foreigners. The biggest buyers are financial institutions, investment funds and pension funds.

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