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New BNDES Green Bond Fund Post COP22 Example For Global DFIs

Next Step in Sustainable Development for Brazil

 

London - December 8, 2016 (www.investorideas.com newswire) BNDES new Sustainable Energy Fund is a post COP22 example of the expanded role Development Finance Institutions (DFIs) must play to help stimulate private investment in green finance solutions and sustainable development, Climate Bonds Director Justine Leigh Bell will say to institutional investors during her address at a Brazil New Economy forum to be held in London today, Thursday 8th Dec.

Representatives from BNDES – Brazil's National Bank for Economic and Social Development – will join ministerial representatives and major Brazilian companies Suzano Papel & Celulose, CPFL Renováveis, Ecoagro and Klabin at London Stock Exchange and Guildhall events focussed on highlighting sustainable investment opportunities in Brazil to UK and international investors.

BNDES, one of the largest development banks in the world, has just announced the formation of a R$500 million (USD144 million) green bond fund to buy bonds which will to finance or refinance projects and assets aligned to a low carbon infrastructure with a focus on domestically issued renewable energy bonds.

The development bank's investment arm, BNDESPAR, will take a maximum shareholding of 50 percent of the Fundo de Energia Sustentável (Sustainable Energy Fund), which will look to capitalise by Q3 2017. The Fund will have a 15 year investment horizon.

In addition to creating a new infrastructure project financing vehicle, BNDES expects with this initiative to encourage a local green bond market, increasing the investor base in infrastructure and increase liquidity for infrastructure securities.

"BNDES is providing a post COP22 example of the expanded role the world's development finance institutions must play to help bridge the climate finance gap and increase private sector investment," Ms Leigh-Bell will inform the forum.

"Sessions and speakers in Morocco often canvassed the need for DFIs & MDBs to adapt their lending models, provide more project finance, risk bridging, joint financing initiatives and help build liquidity in green based domestic & international debt markets during their discussions."

"The BNDES Fundo de Energia Sustentável (Sustainable Energy Fund) structure begins to address many of these questions."

"Similar examples to this Brazil fund need to be adopted, adapted to meet other domestic market characteristics, replicated and up-scaled as part of developing new climate finance models around project funding, pipeline development, joint investments and financing of new green infrastructure."

For more information, please contact:

Andrew Whiley,
Communications Manager,
Climate Bonds Initiative (International)
+44 (0) 7506 270 943

About Climate Bonds Initiative:

The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. For more information please visit here.

About BNDES:

Established in 1952, the National Bank for Economic and Social Development is now a state-owned company under private law, which resulted in more flexibility to raise and invest funds. It has played a fundamental role in stimulating the expansion of industry and infrastructure in Brazil, offering several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors. Additional information is here:

In the 21st Century, the BNDES has confirmed its social and environmental commitment and innovation capacity with strategies and policies aligned with Brazil's NDCs, from its announcement in October of further investments in solar energy and reduction of capital to coal and gas projects, to the most recent creation of the Sustainable Energy Fund.

The Brazil New Economy forum is being coordinate by the Climate Bonds Initiative, foundation members of the Global Infrastructure Investment Coalition (GIIC) and is supported by British Embassy Brasilia, UK Trade & Industry, the City of London and Santander. More information is available here.

Disclaimer: The information contained in this media release does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.

The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.

More Info:

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