- 2017, 15 f
The Rio Energy debenture issuance received a favorable second opinion from SITAWI and verification from its partner VigeoEiris, in accordance with the criteria established by the Climate Bonds Standards Board. The company, developer and operator of renewable energy projects, made its second issuance of infrastructure debentures in the amount of R$ 111.8 million, due in December 2028, to the Itarema Wind Complex in Ceará state. The amount issued was considered the largest for a wind farm in Brazil this year and the rate was the lowest ever obtained by Rio Energy, proving Brazilian investors’ appetite for green investments.
A pioneer in the evaluation of green bonds in Brazil, SITAWI provides an independent opinion on the social and environmental performance of projects financed with the proceeds. In addition to Rio Energy, three other domestic green bonds received a second opinion by SITAWI: CPFL Renováveis (debentures, R$ 200 million), Suzano Papel e Celulose (agriculture receivables certificate – CRA, R$ 1 billion), and Omega Energia (infrastructure debenture, R$ 42 million).
“Rio Energy is one of the Brazilian companies pioneering green bonds. SITAWI’s opinion sought to verify the responsibility of the company in the construction of wind complex, as well as its balance of social and environmental impacts over time. In this way, investors can have more confidence that the benefits of renewable and low carbon energy do not come at the expense of other local impacts,” said Gustavo Pimentel, Managing Director of SITAWI.
The Rio Energy issuance was led by Banco Itaú BBA, with the participation of XP Investimentos and Banco Santander. In addition to the infrastructure debentures, BNDES financed R$652 million with the support of private banks for bridge loans and sureties.
“The issuance of infrastructure debentures for one of the company’s wind energy complexes in the current political and economic context strengthens Rio Energy’s success track record in the implementation of renewable energy projects and reinforces the interest of local investors and BNDES who have played an important role in promoting this market,, “says Roberto Colindres, CFO of Rio Energy.
In commercial operation since 2016, the Itarema Wind Complex is composed of nine parks with 207 MW of total installed capacity through 69 wind turbines of 3MW each.
The green bond is a corporate bond that earmarks the proceeds to environmentally sustainable projects and assets. Since the first issuance in 2007, more than USD 200 billion has been raised with the instrument. Learn more by reading the Guide for Issuing Green Bonds in Brazil.
Check out the Guide for Issuing Green Bonds in Brazil. The publication aims to guide participants and stakeholders in the fixed income securities market in Brazil regarding the process of issuing Green Bonds.