May 2, 2018

Launched this Wednesday, 2, Green Bond Annual Report presents projects supported with funds raised abroad through the issuance of green bonds

Eight wind farms in six Brazilian states have been supported, with 1,323 MW of installed capacity. Together the wind farms avoid the emission of more than 420 thousand tons of CO2 per year

The Brazilian Development Bank (BNDES) launches its first Green Bond Annual Report this Wednesday. The document, unprecedented among Brazilian banks, provides information on wind energy projects supported with US$ 1 billion raised by BNDES in the international market in 2017 and destined to finance environmentally sustainable projects.

Executed in May last year, the green bond fundraising in the international market was the first of its kind conducted by a Brazilian bank and has bonds that mature in 2024.

The funds raised were used to support eight wind power generation projects, distributed in six Brazilian states: Ceará, Piauí, Rio Grande do Norte, Pernambuco, Bahia and Rio Grande do Sul. Together, the projects have 1,323 MW of installed capacity, which represents more than 420,000 tons of CO2 equivalent avoided per year.

The green bonds have similar characteristics to conventional bonds, but the funds obtained were exclusively allocated to environmentally sustainable projects, attested to by a company specialized in the environmental area. In the case of BNDES, they went to, new or existing wind power projects in the Bank's portfolio.

Investments in wind farms, especially in the Northeast region, are one of the highlights of BNDES' quarterly performance, recently released. They helped drive disbursements in the electric power segment, which reached R$ 1.7 billion in the first three months of the year. 

International presence – The green bonds in the publication launched today contributed to consolidate the international presence of BNDES and provide a series of benefits, among which: to reinforce the priority given by the Bank to the theme of socio-environmental sustainability; promote the dissemination of best practices in social and environmental management; encourage the access of other Brazilian issuers to the green bond market; and construct a new point of reference in its term structure of international interest rates.

Download and read The Green Bond Annual Report.