Brazil offers its first US$2bil ESG bonds

The proceeds of the notes will be allocated to green and social projects under the country’s newly approved framework for sustainable bonds. — Bloomberg

BRASILIA: Brazil is finally selling its first-ever sustainable bond, marking a long-awaited deal intended to support president Luiz Inacio Lula da Silva’s environmental, social and governance (ESG) agenda.

Latin America’s largest economy – which is home to 60% of the Amazon forest – is offering US$2bil in bonds due 2031 to yield 6.5%, less than the initial price talk of about 6.8%, according to a source.