Green bonds, known as green bonds, were the subject of debate at the Ministry of Industry, Foreign Trade and Services (MDIC). Led by the portfolio, the Working Group that discusses the issuance of these bonds met this week [Wednesday, 04] with representatives of agribusiness companies interested in the topic. The objective of the meeting was to sensitize financial market players about the issuance of green bonds, the low carbon economy and adaptation to climate change.
Green bonds function as fixed income securities used by companies and governments to raise funds for investments in projects that preserve the environment and promote sustainable growth. They also function as a source of financing, or additional refinancing, such as loan and bank financing or even the issuer’s own resources.
MDIC’s Executive Secretary, Yana Dumaresq, who presided over the meeting, took advantage of the meeting with businessmen to highlight that Brazil has enormous potential to compete in the market. “Certainly, in agroindustrial or forest-based projects, as well as in the field of renewable energies, Brazil is a world leader and offers numerous opportunities for investors and entrepreneurs,” he said.
For Dumaresq, this new market is experiencing substantial gains in business volumes and capital allocation worldwide. “Recent experiences, including from Brazilian companies, point to a demand that is much higher than supply and has already reached the billions of euros,” recalled Dumaresq.
During the discussions, the members of the WG recalled achievements of the group that, in recent months, have sought partnerships for solutions to various bottlenecks in the chain, such as the Memorandum of Understanding signed last year between the Latin American Development Bank and the Banco da Amazônia. The memorandum opens the possibility of establishing a financial repayment related to the opening of a Multilateral Bank credit line to BASA to finance the portfolio of Green Projects eligible for the issuance of green bonds, including agriculture, forestry and other areas within the scope of Amazon region.
In addition to federal government employees and businessmen, representatives from Apex-Brasil, the Climate Bonds Initiative (CBI), BNDES, national and international banks and the environment sector attended the meeting. In June this year, Apex-Brasil intends to run a roadshow on green bonds in China and, in the second half, in the United States.