A new report from the Climate Bonds Initiative noted that the Brazilian green bonds market has now reached US$3.67 billion.
From the inaugural issuance by BRF in June 2015 to September 2017, a total of nine labelled Brazilian green bonds have been issued – five of which were in the international market.
The report adds that Brazilian bond issuance from Q1 2017 to Q2 2018 reached a total of US$288.4 billion, with green bonds accounting for 0.2%. When it comes to determining what sectors that domestic green bonds are financing, the report notes that clean projects hold the highest proportion at 42%. Agriculture and forestry projects rank second at 24%, followed by water (13%), buildings and industry (9%) and waste and pollution (8%).
Another major development is the level of heightened demand for Brazil green investment products by international investors highlighted in the response to recent green bonds issued by Klabin (US$500 million) and BNDES (US$1 billion). Both issuances were well oversubscribed and priced below estimate.