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Brazil Raises $2 billion with Green Bond Issuance Abroad

Rate has the smallest difference compared to the U.S. Treasury bond in almost a decade

The Brazilian government raised $2 billion on Monday (13) with its first sovereign issuance of sustainable bonds in the international market.

The initiative aimed to place the country on the map of economies that raise funds with a commitment to invest them in activities with the ESG seal (acronym for environmental, social, and governance best practices).

According to the Treasury, the return rate for investors was 6.5% per year, representing 181.9 basis points above the benchmark U.S. Treasury bond—the lowest level in new issuances in almost a decade.

Finance Minister Fernando Haddad stated that the result was quite significant. “The international market recognizes Brazil as if the country had an investment-grade. It is charging an interest rate comparable to Mexico, for example, which has an investment grade,” he said.

The Treasury stated that the demand for the bonds “far exceeded” the issued volume, with the order book at $6 billion. The issuance was made at 98.572% of its face value.

Source: Folha De S Paulo