The State of the Market 2017 Brazil Edition
The Brazilian labelled green bonds market has now reached $3.67bn thanks to national companies. From the inaugural issuance by BRF in June 2015 to September 2017, nine labelled Brazilian green bonds have been issued, five of them in the international market.
Brazilian bond issuance in Q1 and Q2 2017 reached a total of $288.4bn, with green bonds accounting for 0.2% (in comparison to the global bond market, green bonds made up 4% of issuance in the same period.
The State of the Market 2017 Brazil Edition also includes a deep analysis of the market and outlines the investment directions needed to finance Brazil’s low carbon growth in agriculture, forestry, renewable energy and the development of its urban transport sector and other climate smart infrastructure projects.).
Domestic green bonds are financing a diverse range of sectors:
- Clean energy projects - 42%
- Agriculture and Forestry projects - 24%
- Water - 13%
- Buildings & Industry - 9%
- Waste & Pollution - 8%
- Transport & climate Adaptation - 2% each
Another notable 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 ($500m) and BNDES ($1bn). Both issuances were well oversubscribed and priced below estimate. This and other similar results are an indication that interest in green securities is strong and recent market development initiatives in Brazil have contributed to improve investor and market understanding of green bonds and their benefits.
Green bonds were created to fund projects and assets that have positive environmental and/or climate benefits. Although there is no specific regulation, best practice is for issuers to obtain international certification or contract an independent assessment of the green credentials of the assets to gain credibility with investors.
In Brazil:
- 4 domestic bonds were evaluated by SITAWI
- 3 of these were also Certified under the Climate Bonds Standard.
Among the other findings, the report underlines a significant opportunity to finance the expansion of low carbon agriculture at scale, to increase the diversification of renewable energy sources and to develop resilient infrastructure to meet a new economic standard in the country.
Learn more: download the report here.
The Brazilian labelled green bonds market has now
reached $3.67bn thanks to national companies
–
the latest results in the second
Brazil Edition
of the
Bonds &
Climate Change
–
The State of the Market
2017
report. From the inaugural issuance by BRF in June 2015 to
September 2017, nine labelled Brazilian green bonds have been issued, five of th
em in the international market.
The global
State of the Market 2017
report is the flagship international stocktake of green finance and green bonds,
published annually by the Climate Bonds Initiative, commissioned b
y HSBC. Available in English & Portuguese,
Brazil
Edition
has been produced in partnership with the Inter-American Development
Bank (IDB) and the Brazil
’
s
sustainable finance expert SITAWI and is being launched today at the Sã
o Paulo headquarters of Mattos Filho
Advogados
,
accompanied by a live webcast
.
The report finds that Brazilian bond issuance in Q1 and Q2 2017 reached a to
tal of $288.4bn, with green bonds
accounting for 0.2% (in comparison to the global bond market, green b
onds made up 4% of issuance in the same
period.
The State of the Market 2017 Brazil Edition
also includes a deep analysis of the market and outlines the investm
ent
directions needed to finance Brazil
’
s low carbon growth in agriculture, forestry, renewable energy and the
development of its urban transport sector and other climate smart infrastructure
projects.
).
The State of the Market 2017 Brazil Edition
also finds domestic green bonds are financing a diverse range of sect
ors,
with clean energy projects accounting for the highest proportion at 4
2%. Agriculture and Forestry projects, second
highest at 24%, followed by Water at 13%, Buildings & Industry at 9%,
and Waste & Pollution at 8%. Transport &
climate Adaptation make up just 2% each, an indicator of the signific
ant headroom for investment in these areas.
Another notable 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 ($500m) and BNDES
($1bn)
.
Both issuances were well oversubscribed and pric
ed
below estimate.
Th
is and other similar results are an
indication that interest in green securities is strong and recent market dev
elopment initiatives in Brazil have
contributed to improve investor and market understanding of green bonds and
their benefits.
Green bonds were created to fund projects and assets that have positive environmental
and/or climate benefits.
Although there is no specific regulation, best practice is for issuers to
obtain international certification or contract an
independent assessment of the green credentials of the assets to gain credibility wit
h investors. In Brazil, for
example, the four domestic bonds were evaluated by SITAWI and three of these
were also
Certified
under the
Climate Bonds Standard
.
Among the other findings, the report underlines
a
significant opportunity to finance the expansion of low carbon
agriculture
at
scale, to increase the diversification of renewable energy sources and to develop
resilient
infrastructure to meet a new economic standard in the country.
The Brazilian labelled green bonds market has now
reached $3.67bn thanks to national companies
–
the latest results in the second
Brazil Edition
of the
Bonds &
Climate Change
–
The State of the Market
2017
report. From the inaugural issuance by BRF in June 2015 to
September 2017, nine labelled Brazilian green bonds have been issued, five of th
em in the international market.
The global
State of the Market 2017
report is the flagship international stocktake of green finance and green bonds,
published annually by the Climate Bonds Initiative, commissioned b
y HSBC. Available in English & Portuguese,
Brazil
Edition
ha been produced in ptainable finance expert SITAWI and is being launched today at the Sã
o Paulo headquarters of Mattos Filho
Advogados
,
accompanied by a live webcast
.
The report finds that Brazilian bond issuance in Q1 and Q2 2017 reached a to
tal of $288.4bn, with green bonds
accounting for 0.2% (in comparison to the global bond market, green b
onds made up 4% of issuance in the same
period.
The State of the Market 2017 Brazil Edition
also includes a deep analysis of the market and outlines the investm
ent
directions needed to finance Brazil
’
s low carbon growth in agriculture, forestry, renewable energy and the
development of its urban transport sector and other climate smart infrastructure
projects.
).
The State of the Market 2017 Brazil Edition
also finds domestic green bonds are financing a diverse range of sect
ors,
with clean energy projects accounting for the highest proportion at 4
2%. Agriculture and Forestry projects, second
highest at 24%, followed by Water at 13%, Buildings & Industry at 9%,
and Waste & Pollution at 8%. Transport &
climate Adaptation make up just 2% each, an indicator of the signific
ant headroom for investment in these areas.
Another notable 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 ($500m) and BNDES
($1bn)
.
Both issuances were well oversubscribed and pric
ed
below estimate.
Th
is and other similar results are an
indication that interest in green securities is strong and recent market dev
elopment initiatives in Brazil have
contributed to improve investor and market understanding of green bonds and
their benefits.
Green bonds were created to fund projects and assets that have positive environmental
and/or climate benefits.
Although there is no specific regulation, best practice is for issuers to
obtain international certification or contract an
independent assessment of the green credentials of the assets to gain credibility wit
h investors. In Brazil, for
example, the four domestic bonds were evaluated by SITAWI and three of these
were also
Certified
under the
Climate Bonds Standard
.
Among the other findings, the report underlines
a
significant opportunity to finance the expansion of low carbon
agriculture
at
scale, to increase the diversification of renewable energy sources and to develop
resilient
infrastructure to meet a new economic standard in the country.