São Paulo Dialogue 30th May-Brasil: Investment potential for Brazil’s Low Carbon Economy

Jay OwenGreen Prosperity

São Paulo Dialogue to outline investment potential for Brazil’s Low Carbon Economy

30th May parallel session to the Brazil Investment Forum will see national and international investors join agriculture and energy executives to identify large scale low carbon investment opportunities.

The Climate Bonds Initiative, in partnership with IADB and EcoAgro, is convening a parallel session supporting Brazil Investment Forum to outline low carbon investment opportunities in Brazil.

More than fifty national and international investors and executives from major agriculture and energy companies will gather for the Executive Dialogue in São Paulo next Tuesday, May 30th.

Among the confirmed panelists are Marcelo Vieira, President of SRB (Sociedade Rural Brasileira); Jonatas Couri, Partner at EcoAgro; Marcelo Allain, Secretary for the Investments Partnerships Program; John Liu, CIO of Zurich and Guilherme Hirata, Executive Manager of Corporate Finance of Suzano Papel e Celulose.

Institutional investor and corporate participants will have a face to face opportunity for dialogue on accelerating investment in sustainable long-term growth consistent with Brazil’s environmental and economic development goals.

Only a few days away from the tenth anniversary of the first green bond ever issued, Brazil is showing potential to be a world leader on green finance, offering large scale investment opportunities across its energy, land use and infrastructure sectors.

Who’s saying what:

“Green Finance and Agribusiness in Brazil have a natural synergy. Certainly, one shall benefit from the other as Brazil develops a low carbon economy and Agri improves environmental, social and governance practices,” said Milton Menten, CEO of EcoAgro.

“Brazil has made strides in advancing its techniques in low carbon agriculture production in recent years, positioning itself as a future global leader in providing the world with sustainable agriculture products at scale,” said Justine Leigh-Bell, Climate Bonds Director of Market Development.

“The Executive Dialogue will offer an unparalleled opportunity for investors to engage directly with their peers on new economy and low carbon investment directions, not only in agriculture but also in other major industry sectors.”

The green bond market development is underway in Brazil with $3.2bn issued to date. Climate Bonds Initiative predicts at least $3-5bn in issuance of green bonds out of Brazil in 2017.

“As the third largest emerging economy, a G20 member and major food and produce exporter, where Brazil goes on clean energy, low carbon land use and agricultural practices has a global impact”, said Sean Kidney, CEO of the Climate Bonds Initiative.

“Green bond financing presents an opportunity to accelerate the growth of Brazil’s sustainable agri-industry and meet growing demand from international investors in search of green emerging market debt investments.”

Climate Bonds Executive Dialogue:

May 30th, Grand Hyatt Hotel, São Paulo

Agenda:

12: 40 Chair’s Welcoming Remarks:

Justine Leigh-Bell, Director Market Development, Climate Bonds Initiative

13:00 Lunch

13: 20 Moderated Panel Discussion:

  • Sean Kidney, CEO, Climate Bonds Initiative
  • Marcelo Vieira, President of SRB (Sociedade Rural Brasileira)
  • Jonatas Couri, Partner at EcoAgro
  • Marcelo Allain, Secretary of the Investments Partnerships Program (PPI)
  • Guilherme Hirata, Exec Manager of Corporate Finance Suzano Papel e Cellulose SA
  • John Liu, CIO at Zurich
  • André Salcedo, Head of Capital Markets Development Department, BNDES

 

14:30 Close

 

Spotlight on Brazil:

Climate Bonds undertakes a number of in-country market development programs including activities in Brazil. More information can be found here.  Climate Bonds regularly blogs on Brazil based events and green bond developments. Recent posts can be found here, here and here.

Current Brazil Green Bonds:

In November 2016,  Suzano Pulp & Paper SA announced the first green bond issued in Brazilian Real, following up on their successful USD 500m green issuance in July.

According to Marcelo Bacci, CFO at Suzano, their green bond had “the lowest yield ever in a CRA (green securitisation) in the local markets, mostly due to its green characteristics.”

This is the third green bond from Brazil since food giant BFR led off in May 2015 with a EUR 500m (USD 549m) BBB-rated bond attracting more than 50% European buyers.

Late 2016 also saw CPFL Energias Renováveis with a BRL 200mm green issuance.

Forestry and pulp conglonerate Fibria issued a USD 700m green bond in January 2017 and development bank BNDES raised USD 1bn on 9th May, the first international green bond issued by a Brazilian bank.

Brazil Profile:

Brazil is the world’s ninth biggest economy and  is the world’s largest exporter of sugar and soybeans, the 3rd largest exporter of corn and 4th largest producer of fibre furnish. It has the world’s largest area of arable land in a single country.

According to the FAO, Brazil will have to increase its food production significantly to help cope with 2050’s world population.

Brazil State of the Market Report:

Published in both Portuguese and English, the Brazil Edition of the Climate Bonds Initiative flagship report was released in August 2016 and tracks all climate-aligned and green bonds issued within the Brazilian market from Jan 1st 2005 to May 31st 2016.