BRK Raises BRL 2 Billion with ‘Blue Debenture’, the first in Brazil
BRK Ambiental which provides water and sanitation services in more than 100 municipalities – has raised 1.95 billion Brazilian riyals in the “Blue Bond”, a guaranteed debt that financed projects related to the preservation of natural resources water, oceans and marine life.
The infrastructure bond period is 20 years and pays IPCA +7.62% per annum. The log has a 30-month grace period and shuts down every six months. Demand exceeded supply by 1.6 times.
According to BTG Pacual, who led the process, it was the first blue bond release in Brazil and the private sector in Latin America, and the first to market in the global wastewater sector.
One type of “green bond” sub-category – which finances environmental investments – is considered blue bonds of particular importance to countries on islands or have extensive coastlines and numerous navigation rivers, which means they have everything that can be taken in Brazil.
Seychelles issued the first sovereign blue bond in October 2018.
The bond was issued by BRK Maceió, and the money will be used to pay and pay expenses, grants and debts related to the implementation and delivery of water supply and sanitation services in the capital, Masio, including the capital and 12 other cities. BRK services were granted during the first auction organized by BNDES and were implemented after the approval of the organizational framework for sanitation, which was approved in 2020.
According to the company, the project will benefit more than 1.5 million people.
The banking syndicate also included Bradesco, Itaú BBA, Santander, UBS/BB, Safra and XP.
BRK serves 16 million people in 13 Brazilian states.