Treasury intends to launch sustainable bonds from September

Federal securities issued abroad linked to commitments to the environment. Instead of receiving mere financial interest, foreign investors would receive the income from a sustainable project. According to the Secretary of the National Treasury, Rogério Ceron, the government wants to be ready to issue these papers on the international market as of September.

“The appropriate date, between September, October and November, will depend on the market window. It is a strategic position for the Treasury to find the best window of opportunity to carry out issues”, said the secretary after the first meeting of the Sovereign Sustainable Finance Committee.

Launched last month, this committee it is chaired by the Secretary of the Treasury and is in charge of drawing up the rules for issuing sustainable bonds. Issued by the Treasury, these securities will be backed by funds from the General Budget of the Union destined for sustainable development, including environmental and social actions and projects.

The committee will be in charge of preparing a legal framework, which will present to investors Brazil’s commitments in the environmental, social, governance and finance agenda, in addition to bringing the guidelines and criteria that the Union will adopt to launch the securities on the market.

“We already have a draft discussed, we have some improvements and suggestions. Now, it is a job of consolidating contributions (from other ministries). There is a new meeting that will take place in July and we should have the framework closed to start an independent assessment on the adequacy of this framework and then we are ready to start road show (presentations to foreign investors)”, detailed the secretary.

According to Ceron, these bonds will represent an important step for the country to implement the environmental and social governance (ESG) agenda. “There is a great appetite and interest from foreign investors in this agenda and this meeting was another step”, she declared.

Training

In addition to the National Treasury, representatives of the following bodies participate in the Sovereign Sustainable Finance Committee: Ministries of Agriculture and Livestock; Science, Technology and Innovation; of Agrarian Development and Family Agriculture; Development and Social Assistance, Family and Fight against Hunger; Development, Industry, Commerce and Services; Integration and Regional Development; the Environment and Climate Change; Mines and Energy; Economic Policy Secretariat of the Ministry of Finance; and Federal Budget Secretariat of the Ministry of Planning and Budget.

Representatives of other bodies and entities, public and private, may participate in the meetings as guests, as well as specialists in the subjects at hand.