Brazil plans inexperienced bond sale, debt chief says

LONDON, Jan 26 (Reuters) – Brazil plans to challenge its first ever inexperienced bond, its head of public debt operations stated on Thursday, as the federal government seeks to make use of the environmental agenda to draw funding.

“Sadly it took Brazil a little bit longer than it took our friends,” Luis Felipe Very important, head of public debt operations on the Brazil Nationwide Treasury instructed an occasion.

“However we’re positive we can have very fascinating issues to announce sooner or later.”

In early 2021 underneath the federal government of then-President Jair Bolsonaro, the Treasury stated it might construct a framework for issuing an ESG sovereign bond, referring to a bond primarily based round environmental, social and governance standards.

Most governments promote such debt within the format of a inexperienced bond, the place the funds are used for environmental tasks.

The challenge failed to maneuver ahead, at a time when Bolsonaro’s environmental coverage was criticized globally.

New President Luiz Inacio Lula da Silva’s victory in October is predicted to offer the environmental agenda a lift because the leftist chief seeks to embrace the transition to a inexperienced economic system as a spotlight of a state-driven improvement coverage.

Even earlier than taking workplace initially of the yr, Lula promised an bold environmental overhaul, with plans to grant new protected standing to half one million sq. km (193,000 sq miles) of Amazon rainforest, struggle deforestation, subsidize sustainable farming and reform Brazil’s tax code to bolster the shift to a greener economic system.

“Brazil does give loads of significance for the atmosphere parts,” Very important stated at occasion organised by assume tank OMFIF.

“So we’re trying ahead to be again out there in a bond associated to that.”

Brazil’s final overseas debt challenge came about in June 2021, when it raised $2.25 billion.

Reporting by Yoruk Bahceli, with extra reporting from Marcela Ayres in Brasilia; modifying by Dhara Ranasinghe and Deepa Babington

Our Requirements: The Thomson Reuters Belief Ideas.

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