FS Bioenergia raises BRL 530 million in unprecedented green finance operations based on SITAWI Second Party Opinion

FS Bioenergia was responsible for three new green finance operations in Brazil in recent months. The company raised BRL 530 million and based two of them on SITAWI’s SPO.

The first operation, BRL 210 million in Agribusiness Receivable Certificates (CRA), was the first Green CRA for bioenergy sector in Brazil, issued in March this year. FS Bioenergia is the largest producer of ethanol exclusively from corn in Brazil.

The second operation took place at the end of June, when FS concluded the issuance of BRL 138.5 million in Real Estate Receivable Certificates (CRI), with rates linked to the achievement of corporate ESG-linked goals. It was the first time that the rate-binding mechanism (ESG-Linked) was used in Brazil in an operation in the capital market – and only the second time all around the world that this ESG-linked mechanism for bond issuances has been used.

Also in June, an ESG-Linked loan of BRL 180 million from Santander Brasil was the first transaction of this type in BRL. Previously, another 3 Brazilian companies have used this mechanism, but based on USD in operations led by foreign banks.

“We have a ‘green ocean’ of opportunities for fundraising with ESG elements by Brazilian companies. FS Bioenergia prepared itself, designed a robust framework and proved that there is appetite for domestic investors for the concept. I hope other companies will follow suit.” commented Gustavo Pimentel, Executive Director of SITAWI.

SITAWI is a pioneer in the external review of green bonds and equity transactions, and also operates in the labeling of transactions with social and/or sustainable bonds, having issued more than 30 second party opinions. Recently, the institution launched Brazil’s first and only green debt transactions database.

Read the full article on Valor Econômico (Portuguese only).