Brazil wins international awards for best sustainable issuance in 2023

Yesterday, April 16th, Brazil won in the category “Latin American ESG Deal of the Year” of the Latin America Bond Awards, organized by Global Capital. This award, presented at a ceremony held in New York, reflects the recognition for the efficient issuance of the ESG bond by the National Treasury, in November 2023.

This was the first issuance of a sovereign sustainble bond by the Federative Republic of Brazil. The operation raised US$ 2.0 billion, with a return rate of 6.50% per year for investors, which resulted in a 181.9 bp spread above the benchmark US Treasury Bond, the lowest level for new issuances by the Republic in almost a decade.

The issuance represents a new milestone, by reaffirming Brazil’s commitment to sustainable policies, since the allocation of the net proceeds of the issuance will be directed towards expenses that promote sustainability and contribute to climate change mitigation, to the conservation of natural resources and to social development. Another important aspect of the issuance was to create a reference in the international market for the Brazilian corporate sector, thus encouraging new ESG issuances, both public and private. The issuance was based on Brazil’s Sovereign Sustainable Bond Framework, developed by the Sovereign Sustainable Finance Committee, a collegiate body presided by the National Treasury, with the support of the Inter-American Development Bank (IDB) and the World Bank (WB).

This was the first edition of the Latin America Bond Awards. Brazil was nominated in five categories, two as an issuer (Most Impressive Sovereign Bond Issuer in Latin America and Most Impressive ESG Bond Issuer in Latin America) and three for the ESG bond issuance (Latin American Sovereign Bond Deal of the Year, Latin American ESG Deal of the Year and Latin American Bond Deal of the Year).

Global Capital is a Finacial News and Information Platform, with more than 30 years of experience. Among its activities, it organizes and promotes award programs for issuances, issuers, banks and rating agencies, among others that participate in external and domestic issunces, and that have stood out each year.

Sustainable Debt Awards 2024

The previous week, on April 8th, the Environmental Finance News Platform, organizer and sponsor of the “Sustainable Debt Awards 2024”, had already awarded Brazil the “Sustainability Bond of the Year” award in the sovereign category, for its November 2023 ESG issuance.