Sicredi issues a USD 100 million subordinated Green Bond with IDB Invest to finance renewable energy projects

Aware of the growing demand for credit for the installation of solar energy systems in Brazil, Sicredi has just carried out its first issuance of Green Bonds (debt securities issued specifically to finance projects with environmental benefits) abroad. The issue made with IDB Invest, a member of the Inter-American Development Bank (IDB), was worth USD 100 million (around R$ 550 million), with 100% of the resources destined to financing new photovoltaic energy and efficiency projects energy, which will be available from the end of January.

This is the first issue of a subordinated Green Bond by a Brazilian issuer acquired by IDB Invest. The operation is certified by the Norwegian consultancy CICERO Shades of Green, specialized in “green bonds”, and has specific criteria for selecting the projects to be financed. According to the consultancy, considering 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, contributing to the consolidation of a more circular economy. One of the fronts on which our Cooperatives act in a relevant way is in financing the implementation of systems for the use of renewable energy, which is in line with the global movement to reduce the emission of greenhouse gases, in which Sicredi has been engaged for some years”, says Cesar Bochi, executive director of Administration at Sicredi. “With this, we provide our associates with resources to develop sustainable projects, with a positive economic, social and environmental impact, generating value for the business 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, objectives 7, 9 and 13 are being met, which deal, respectively, with affordable and clean energy; Industry, innovation and infrastructure; Action against global climate change.

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, an increase of 93% compared to the same period in 2020. Of the balance reached, R$2,4, 1,1 billion were allocated to Legal Entity (PJ) members, R$940 billion to Individuals (PF) and R$12 million to rural members (family farming, medium and large producers). In the last 2,5 months alone, the volume of credit granted by the institution for this purpose in the country exceeded the R$XNUMX billion mark.