B3 is now giving greater visibility to green bonds in its systems. Listed companies whose securities are certified as green bonds will be given the possibility of identifying their securities as such by B3. The initiative is in line with the B3’s strategy to develop the Brazilian capital markets and further its sustainability agenda.
Green bonds are debt securities that are used to raise funds aimed at implementing or refinancing projects and purchasing assets that can benefit the environment or contribute to mitigating the effects of climate change.
Among the securities that fall within these parameters are debentures, infrastructure debentures, Agribusiness Receivables Certificates (CRAs), Mortgage Backed Securities (CRIs) and FIDC Receivables Funds.
“As we always say, sustainability is business and must be tied to opportunities and risks. With this initiative, we offer the Brazilian market the opportunity to identify green bonds and attract investors interested in diversifying their portfolios with bonds tied to social and environmental responsibility,” says Sonia Favaretto, Media Relations, Sustainability and Communications, and Social Investment director.
“This is the first step we take to understand this market and gauge the Brazilian investor’ appetite for green bonds,” adds Fabio Zenaro, OTC Products, Commodities and New Business director at B3.
With green bonds, the issuer has the possibility of diversifying and broadening its investor base by attracting, in addition to those interested in this agenda, funds that have specific warrants to purchase sustainable bonds.
Furthermore, there are reputational gains since green projects bring greater visibility to companies as they reaffirm their commitment to the social and environmental agenda.