Banco do Brasil, a prominent financial institution in Brazil, has recently achieved a significant milestone in the field of sustainable finance. The state-owned bank has successfully completed a triple sustainable repo with Natixis Corporate & Investment Banking, a renowned French bank, raising $100 million in the process. This groundbreaking transaction is recognised as the first of its kind globally, as it seamlessly integrated three sustainable elements within a single operation.
As stated in a press release from Banco do Brasil, the proceeds from this pioneering deal will be allocated towards refinancing the bank’s sustainable credit portfolio, with a particular focus on social housing projects. It was also revealed that a significant portion of the funds will be directed towards expanding the bank’s investments in sustainable businesses. By the end of 2030, the bank aims to increase its investments to a noteworthy BRL320 billion ($62 billion), a substantial rise from the BRL207 billion recorded at the close of last year.
Notably, Natixis CIB played a crucial role in coordinating the sustainability aspect of the operation. Additionally, the bond was backed by Brazil’s inaugural sustainable bond issued in November of the previous year, acting as a guarantee of Banco do Brasil’s unwavering commitment to sustainable practices.
José Ricardo Sasseron, the bank’s vice president of government business and corporate sustainability, expressed his satisfaction with the deal’s pricing. He highlighted the innovative nature of the transaction and emphasised how incorporating ESG (environmental, social, and governance) criteria can effectively mitigate financial, social, and climate risks, thereby enhancing the appeal of assets within the market.
This recent financial achievement follows Banco do Brasil’s successful sale of $750 million worth of seven-year sustainable bonds in the international market earlier in March. This particular transaction garnered significant interest and was oversubscribed by 4.7 times. Fitch Ratings affirmed that the proceeds from this issuance will be utilised to fund eligible green and sustainability projects, further solidifying Banco do Brasil’s robust stance in the realm of sustainable finance.
With this remarkable achievement, Banco do Brasil has undoubtedly set a high bar for sustainable finance globally. The institution’s unwavering commitment to integrating sustainability into its financial operations is both admirable and forward-thinking. As the world increasingly recognises the importance of sustainable practices in the financial sector, Banco do Brasil’s groundbreaking endeavours serve as a shining example for other financial institutions to emulate.
Looking towards the future, it is evident that Banco do Brasil’s proactive approach to sustainable finance will continue to shape the landscape of the industry. With an unwavering dedication to promoting sustainable development, the bank is poised to make further strides in fostering a more sustainable and resilient global economy.