Brazil is set to return to the sustainable sovereign bond market later this year after making its first-ever issue last November, Treasury secretary Rogério Ceron told LatinFinance .
“We plan to have new [sustainable bond] issuances in 2024. We have just had a big one now, so we will wait a bit. But we should return to the market at least once or twice this year. We need to feel the market and choose the correct time, but we intend to do it,” he said.
Brazil raised $2 billion in its sustainable bond debut on November 13 and followed it with a $4.5 billion sovereign issue in January.
Ceron said he anticipates an increase in sales of sustainable bonds by Brazilian corporations and cited a survey from InterAmerican Development Bank (IDB) that shows that after the first sovereign issuance of such debt, there is an “exponential increase in sustainable corporate issuances. We made the first issuance and we now see companies doing their own,” he said.
FX HEDGING
Speaking at an event on Monday, Ceron said the Brazilian government could issue sustainable debt to complement its new currency hedging program, which is designed to spur investment and accelerate the transition towards a climate-friendly economy.
Ceron said the government will invest up to $2 billion per year in the program, dubbed Eco Invest Brazil, and expects up to $10 billion private investment in return. The IDB has pledged $7 billion to support the program.
“It will boost the green transition program in terms of debt and equity alike. It is going to allow Brazilian companies to issue sustainable bonds abroad in wind and solar energy, green hydrogen and sustainable agriculture. It will also attract private equity,” Ceron said.
More Sustainable Finance & Investment News
FREE TO READ THANKS TO
