Sustainable Finance is Raised by Banco do Brasil

A triple sustainable repo with the French bank Natixis Corporate & Investment Banking raised $100 million, according to the Brazilian state-owned lender Banco do Brasil, which claims to be the first in the world to integrate three sustainable components in a single transaction.

In a news release, Banco do Brasil stated that it will refinance its sustainable credit portfolio, which is concentrated on social housing projects, using the proceeds from the transaction—the first made possible by its new sustainability-linked debt framework.

To rise from BRL207 billion at the end of last year to BRL320 billion ($62 billion) by the end of 2030, the bank’s investments in sustainable businesses will be the second main focus.

The operation’s sustainability coordinator, Natixis CIB, is guaranteed to uphold Banco do Brazil’s commitment to sustainable practices by way of the country’s first sustainable bond, which was issued in November of last year.

The deal featured attractive pricing, according to José Ricardo Sasseron, vice president of government business and corporate sustainability at the bank.

“This differentiated pricing based on the innovative transaction highlights how the inclusion of ESG criteria can mitigate financial, social, and climate risks, making assets even more attractive,” he said in the statement.

Seven-year sustainable bonds worth $750 million were offered by Banco do Brasil in March; the offering was approximately 4.7 times oversubscribed on the global bond market. According to Fitch Ratings, the money raised from that issue will go toward qualifying green and sustainability projects.