Brazil, home to 60% of the Amazon forest, has announced the sale of its first sustainable bonds in its history, in a deal that has received great interest from investors and aims to support the environmental and social agenda of President Lula da Silva.
The value of the bonds reached two billion dollars, maturing in 2031, and carrying a yield of 6.5%, as the demand for bonds exceeded the supply by three times, with orders worth 6 billion dollars.
The proceeds of the bonds will be allocated to finance green and social projects, such as forest protection, biodiversity, education, health and urban infrastructure, in accordance with the newly adopted framework on sustainable bonds in the country.
It is Brazil’s first issuance in the environmental, social and governance debt markets, which have been experiencing accelerated growth in recent years, having lagged behind other countries such as Mexico, Chile and Peru.
