Coop Green Bond
Resources obtained from the first issuance of foreign debt securities of the cooperative financial institution and the first subordinated Green Bond operation by IDB Invest in Brazil will be 100% destined to new photovoltaic energy and energy efficiency projects
Aware of the growing demand for credit for the implementation of solar energy systems in Brazil, Sicredi has just issued its first Green Bond (debt securities issued specifically to finance projects with environmental benefits) abroad. IDB Invest, a member of the Inter-American Development Bank (IDB), subscribed $100 million (about R$550 million), with 100% of the funds destined to finance new photovoltaic energy and energy efficiency projects, which will be available as of the end of January.
This is the first subordinated Green Bond issue by a Brazilian issuer acquired by IDB Invest. The operation is certified by the Norwegian consulting company CICERO Shades of Green, specialized in “green bonds”, and has specific criteria for the selection of projects to be financed. According to the consultancy and based on criteria such as governance and transparency, the operation fits the “Dark Green Shading” score. The methodology expresses how much a green bond contributes to the reduction of greenhouse gases and considers three scoring levels: light green, medium green, and dark green.
“We have observed an increasingly conscious society, focusing on sustainable initiatives and, consequently, corroborating for the consolidation of a more circular economy. One of the fronts on which our Credit Unions play an important role is in financing the implementation of systems for the use of renewable energy, which is in line with the global movement to reduce greenhouse gas emissions, in which Sicredi has been engaged for several years,” says Cesar Bochi, Sicredi’s Executive Director of Administration. “With this, we enable our members resources for the development of sustainable projects, with positive economic, social and environmental impact, generating business value and strengthening Sicredi’s long-term partnership with the communities where we are present.”
The initiative also contributes to the Sustainable Development Goals (SDGs), to which Sicredi is committed as a member of the UN Global Compact. In the operation, goals 7, 9, and 13 are being met, which deal with Affordable and clean energy; Industry, innovation, and infrastructure; and Action against global climate change, respectively.
Sicredi’s credit portfolio for financing projects for the use of solar energy in Brazil totaled R$4.5 billion at the end of 2021, with a 93 percent increase over the same period in 2020. From the balance reached, R$ 2.4 billion were destined to Legal Entities, R$ 1.1 billion to Individuals and R$ 940 million to rural associates (family agriculture, medium and large producers). In the last 12 months alone, the volume of credit granted by the institution for this purpose in the country surpassed the R$ 2.5 billion mark.
Learn more about Sicredi’s actions and strategies in relation to sustainable development by clicking on the link (in Portuguese): sicredi.com.br/site/sobre-nos/sustentabilidade.
Sistema de Crédito Cooperativo Sicredi (Sicredi System) is a cooperative financial institution committed to the growth of its members and to the development of the regions where it operates. Sicredi’s management model values the participation of its more than 5.5 million members, who play the role of owners of the business. With national presence in Brazil, Sicredi is present in 25 states* and the Federal District, with more than 2,000 branches, and offers more than 300 financial products and services.
*Acre, Alagoas, Amapá, Amazonas, Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Pará, Paraíba, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondônia, Santa Catarina, São Paulo, Sergipe, and Tocantins.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its Latin American and Caribbean member countries through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.