- 2020, 10 f
Banco BV, former Banco Votorantim, is the first national private bank to issue a green bond, debuting directly in the international market. The US$ 50 million fundraising will support BV’s loan portfolio of solar photovoltaic and wind generation power-plants projects. The green bond matures in 2024 and yields 3.35% per year.
SITAWI was responsible for the second-party opinion (SPO) of the US$ 50 million issuance and it allows BV to continue issuing green bonds in the future, as long as it follows the already validated criteria for use of proceeds and reporting.
“The issuance of green bonds made by banks is essential to channel green finances to small and medium companies that don’t have equal access to the capital markets as large companies and are more dependent on bank loans. BV’s issuance will scale up the financing of distributed solar photovoltaic power in Brazil and counts with solid mechanisms for project selection and impact reporting. It is an example that Brazilian banks should follow”, says Gustavo Pimentel, SITAWI’s Executive Director.
The green bond issuance has also received a certification from the Climate Bonds Initiative (CBI) – an international non-profit organization aiming to promote large scale investments in the low carbon economy.
Green bonds are debt instruments such as Corporate Bonds, Debentures, Commercial Paper, Bank Notes, Agribusiness Credit Receivable Certificates (CRA), Agribusiness Credit Notes (LCA), Credit Receivables Investment Funds (FIDC), among others, committed to financing green assets or intending to mitigate climate change.
SITAWI is the Brazilian organization with larger experience in providing external assessment of green bonds, responsible for assessing more than 95% of Brazilian domestic emissions (23), which raised more than R$ 6 billion for green projects and assets. It has also created a national taxonomy of projects and a guide for issuers.
Valor Econômico is a leading Brazilian journal of economy, finance and business and has covered the topic. For more information, read the journal’s article. (Portuguese only)