- 2019, 2 f
By Caio Miranda
In 2018 only two green emission bonds were emitted in Brasil. However, in 2019, SITAWI have already emitted six second opinion statements for green bonds, which received R$ 2.89 billion.
Green bonds are debt instruments, such as debentures, financial certificates, CRA, LCA, and FIDC, which commit to finance green assets or seek the mitigation of climate change. The participants of the green bond market include, beyond the usual participants of the debt securities market, external evaluation agents, who vouch through an independent report, the positive environmental attributes of the projects, for whom the collected resources are intended.
Second opinion statements and support of the green bonds certification
SITAWI is the only Brazilian organization with experience in the formulation of second opinion statements in green bonds. This statement constitutes an evaluation of the green bond’s credentials, guaranteeing that the resources will be destined to green projects, and analyzing the socio-ecological performance of the emitter and the projects that will be supported by the bonds. Additionally, it advises the clients to obtain a Climate Bond Initiative (CBI) certificate. This service is carried out in collaboration with the firm Vigeo Eiris.
Since 2015, SITAWI gave a positive statement to 100% (16 emissions) of the green bonds on the Brazilian domestic market, which raised R$ 5.2 billion in resources for projects working on the generation and transmission of renewable energy, sustainable forest management, recycling, and industrial eco-efficiency. Six further Brazilian enterprises issued bonds abroad and collected 4.5 billion US dollars.
According to Gustavo Pimentel, Director of SITAWI, the Brazilian green bond market could raise R$ 100 billion reais in the next 5 years. The first emission of a bond by a Brazilian firm took place in 2015 when BRF collected 500 million euros. However, this was raised abroad. The first domestic emission happened a year later when Suzano Papel e Celulose collected R$ 1 billion reais. There is a rising movement in the world of fonds, banks and institutional investors, who reserve a part of their portfolio to buy green bonds.
In July 2019, Neoenergia collected R$ 1.29 billion reais in green debentures. The liquid resources will be destined for the future payment or reimbursement of the companies expenses for the last two years. These expenses originate from the development, construction, and operation of a hydroelectric facility in the state of Paraná, eolic parks in the Northeast region and transmission assets in several Brazilian states.
AES Tietê became the first Brazilian enterprise to emit green bonds of solar projects in Brazil, which resulted in the collection of R$ 820 million, with an expiration range of 10 years. The obtained resources will be destined to the solar power plants of Guaimbê and Ouroeste, which currently are the biggest solar energy projects of the state of São Paulo. Both projects have long term contracts and contribute to the supply of the electric energy production and transmission system of Brazil.
Taesa collected R$ 210 million in green debentures in May 2019. the resources will be destined for the construction of three new transmission lines, which will contribute to improving the usage of renewable energy in Brazil.
The Grupo Sabará is the first enterprise of the chemical sector to emit green bonds in Brazil. The private placement of a green debenture of R$ 20 million was destined to refinance the only Sodium Chlorohydrate production plant of Brazil, which operates using solely renewable energy in its production process, and whose production-line is clean, with no residue generation.
Athon is the first business to emit green bond for the generation of distributed solar energy in Brazil. The green debenture of R$ 40 million will raise resources for six solar plants in the states of Goiás, Maranhão, Mato Grosso do Sul, Minas Gerais, and Pará.
Celulose Irani is the second Brazilian forest company to emit a green bond on the domestic market, a debenture valued at R$ 505 million. The resources will be used for the sustainable forest management and certification of the company, as well as the refinancing of a recently acquired paper recycling plant.