A new report from the Climate Bonds Initiative noted that the Brazilian green bonds market has now reached US$3.67 billion.
From the inaugural issuance by BRF in June 2015 to September 2017, a total of nine labelled Brazilian green bonds have been issued – five of which were in the international market.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The report adds that Brazilian bond issuance from Q1 2017 to Q2 2018 reached a total of US$288.4 billion, with green bonds accounting for 0.2%. When it comes to determining what sectors that domestic green bonds are financing, the report notes that clean projects hold the highest proportion at 42%. Agriculture and forestry projects rank second at 24%, followed by water (13%), buildings and industry (9%) and waste and pollution (8%).
Another major development is the level of heightened demand for Brazil green investment products by international investors highlighted in the response to recent green bonds issued by Klabin (US$500 million) and BNDES (US$1 billion). Both issuances were well oversubscribed and priced below estimate.
