The Ministry of Finance will launch, in the coming days, on the New York Stock Exchange, the so-called green bonds – green bonds that aim to capitalize more than US$2 billion on the international market.
The Brazilian government's idea is that the resources be applied to sustainable projects that aim both at the production of renewable energy and energy efficiency, and at themes linked to the preservation of native biomes and natural resources.
This Tuesday (05), The National Treasury published the document that outlines the guidelines for issuing bonds to international investors.
The rules were drawn up by the Sovereign Sustainable Finance Committee and had support from the World Bank and the IDB (Inter-American Development Bank).
The initiative is one of the Federal Government's main agendas in the National Congress, being considered a bet to place the country at the forefront of the ESG agenda.
After raising the funds, the Federal Government must periodically publish two reports to foreign investors. One of them showing where resources were applied and the other with the results of public policies related to the environmental agenda.
What are green bonds?
These are fixed income securities issued by companies, governments and organizations to enable economic sustainability initiatives.
Os green bonds have been gaining prominence in the world due to the current investment scenario, as they are available in several markets and can be an important leverage tool for new initiatives and technologies.
How do green bonds work?
Money is collected from investors and issued in the same way as any other government or private bond. Investors who buy the securities expect a financial return from the appreciation of the securities.
Before being applied, the green bonds they need to be verified by institutions whose role is to certify the validity of the sustainable projects to which the resources will be allocated.
First, a market analysis and project preparation are carried out. After this, companies or governments prepare a plan with an environmental focus or that contributes to combating climate change.
Then, certification is carried out. Before being issued, the title must be analyzed by an external evaluator to ensure that the resources will be allocated to green projects with well-defined impact indicators.
The third step is issuing and offering the security to investors. An intermediary body, such as a bank, financial agency or accredited corporations, issues the title.
Finally, post-issuance is carried out, where reports containing details of the green bond investments must be submitted. In addition, it is also necessary to present guarantees for the issuance of green bonds.
