During Green BNDES Week, the Brazilian Development Bank (BNDES) promoted a relevant advance in the market for green financial bonds, known as “green bonds.” With financial settlement on Thursday (22), the Bank issued R$ 1 billion in Green Financial Bills (LFV).

 

In practice, BNDES will raise funds by issuing Green Financial Bills and transferring them to finance projects with these principles. As a result, BNDES will further reduce the Union's financial demand to promote sustainable development and reinforce the support from both BNDES and the financial market in general to projects with positive social and environmental impact.

 

"BNDES financing portfolio is already mostly green and, now, becomes even more sustainable with this new instrument, which is positive for companies that comply with ASG principles and for the whole society," explained Bianca Nasser, the Bank's Finance director.

 

Unlike the "green bond" issued in 2017, which aimed the foreign market, this R$ 1 billion bond was launched entirely in the Brazilian domestic market, with a 2-year maturity and CDI rate of + 0.45% per year. The issue was made as a private offer to BNDES's main business partners, especially Brazilian financial institutions and institutional investors, with demand exceeding R$ 7 billion.

 

The LFV follows the same framework as international "green bonds", ensuring that the investment of funds is intended to finance environmentally sustainable projects, certified by a verifying company, specialized in the environmental area. Regarding this issuance, wind or solar generation projects will use the funds.

 

Another advance this week for raising funds from different sources and with social impact allocation was the approval by the Federal Senate of an international loan contract of US$ 750 million by BNDES from the Inter-American Development Bank (IDB). The funds will be allocated to micro-, small- and medium-sized enterprises (MSME).

 

All these measures are in addition to BNDES's various initiatives to fulfill its role as an inducer of sustainable development and to meet the needs of its investment budget and disbursements in the future.

 

About BNDES - Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions focus on the socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed to education and health, family farming, basic sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in formulating solutions for resuming economic growth.