Last week in London saw Brazilian companies underline their intention on green bonds and green securities.
CPFL Renováveis, Klabin and Ecoagro foreshadowed potential green bond issuance to an audience of institutional investors during our ‘Investor Roadshow for Brazil’s New Economy’.
The forum saw leading companies in agriculture, forestry and finance join the Brazil Tree Association, national development bank BNDES and government ministries, profiling green investment opportunities to an audience of 200 institutional investors and stakeholders at the London Stock Exchange and Guildhall, as Brazil begins to implement its NDCs and associated goals in agriculture, land use, clean energy and urban infrastructure.
BNDES has just launched a R$500 million (USD144 million) green bond fund (Fundo de Energia Sustentável) intended to lead private sector investment and spur the growth of the domestic Brazilian green bond market and will begin operations by mid-2017.
BNDES will take a more active role on ESG issues amongst its existing portfolio new investments made by the new green bond fund. The bank has indicated it will consider appointing independent directors to company boards as part of the new direction.
The impact of the Forum in building for Brazil’s sustainable economic direction and climate finance goals has been widely acknowledged.
Brazil’s increasingly engaged private sector and solid green policy framework is already unleashing a revolution
Eduardo Dos Santos, Brazil’s Ambassador to the UK:
“Beyond green finance opportunities, the forum highlighted Brazil’s ambition to reinforce its position at the forefront of a model of development that is prosperous, inclusive and sustainable – not only economically, but also socially and environmentally.”
“Brazil’s increasingly engaged private sector and solid green policy framework is already unleashing a revolution in terms of demand, scale and governance for new sustainable development projects.”
Flávio Girão Guimarães, Brazil’s Ministry of Finance:
“The new framework behind Brazil’s infrastructure projects cannot be missed by investors who live in a world of low yields. It is an opportunity to combine economic grow, sustainability and return.”
Flávia Carvalho, IR Superintendent CPFL Renováveis:
“As a pure-play renewables company, CPFL Renováveis believes the development of green bond markets presents a promising opportunity to finance our growth. The opportunity to participate at the Brazil’s New Economy forum in London with the Climate Bonds Initiative London, is one we could not have missed.”
Elizabeth de Carvalhaes, Executive President of IBA (Brazilian Tree Industry):
“We believe the forum has helped bring the financial element that has been missing into climate discussions, especially involving implementation of Brazil’s COP21 NDCs.”
Milton Menten, CEO Ecoagro:
“It was clear that Brazil is expected to assume a prominent position as one of the world’s main players in green finance, especially in agribusiness. Ecoagro was proud to participate in the Climate Bonds Initiative Brazil’s New Economy forum. The event was a good opportunity to demonstrate Ecoagro’s leadership in the green securities segment and present our work with Suzano, the first “green CRA” in the Brazilian market, issued last November.”