- 2017, 3 f
By Karen Garcia
SITAWI issued a favorable opinion on the classification of CPFL Renováveis debentures as a green bond. The utility company was the first in South America to issue a green bond certified by the “Climate Bonds Standard Board”. The debenture, in the amount of R$ 200 million, was issued in 2016 and the proceeds were used to build Campos dos Ventos and São Benedito wind power projects, with 231 MW of installed capacity, located in Rio Grande do Norte state.
The opinion is the second that SITAWI, a pioneer organization in green bond evaluation in Brazil, provides regarding the environmental performance of projects financed with green bond resources. Its international partner, VigeoEiris, has verified the issue according to the Climate Bonds Standards Board criteria. The emission of the Agribusiness Receivables Certificate (CRA Verde) by Suzano Papel e Celulose in November 2016 was the first to receive a positive opinion from SITAWI.
“SITAWI has been promoting green bonds since 2014 as a vehicle for raising funds for Brazilian companies aligned to low-carbon economy. We are happy to have advised another pioneer in this market. We are involved in another 4 operations and we expect that more Brazilian companies may soon join the pioneers Suzano and CPFL Renováveis in the domestic green bond market” commented Gustavo Pimentel, executive of SITAWI.
This week, BNDES announced Vinci Partners as the manager of its Sustainable Energy Fund, which will have R$ 500 million to buy certified green bonds from energy sector, giving strong signals to future issuers.
“We are a 100% green company. We believe in the development of green bonds market in Brazil, as we believe it is promising opportunity to finance projects that stimulates the country’s sustainable development”, said Gustavo Souza, CPFL Renováveis’ CEO.
The green bond is a debt bond that links the funds raised to environmentally sustainable projects and assets. Since the first issue in 2007, there are more than USD 200 billion raised with the instrument. Learn more by reading the Guide to Green Bonds Issuance in Brazil.