Brazil has launched a $2bn sustainable bond to finance green investments, while Uruguay has been granted a $350 million green-oriented loan by the World Bank. Brazil's bond will support projects in renewable energy, waste management, and sustainable agriculture, showcasing the country's commitment to a low-carbon economy. The bond is expected to attract interest from investors in the green finance sector. Meanwhile, Uruguay's loan includes a reduction in interest rates if environmental goals, such as a reduction in methane gas emissions, are met. The loan aims to strengthen Uruguay's position in agricultural export markets and promote sustainable production. These initiatives by Brazil and Uruguay demonstrate their dedication to sustainable development and combatting climate change.
In addition, Rathbones, an investment management company, is launching the Rathbone Greenbank Global Sustainable Bond fund. The fund, managed by Bryn Jones and Stuart Chilvers, will focus on sustainable themes aligned with the UN Sustainable Development Goals. It will invest in government, investment grade, and high yield bonds denominated in dollars, euros, and pounds. The fund will use a screening process to exclude industries such as alcohol, armaments, gambling, and tobacco. It will also employ the 'Four Cs Plus' investment process, which evaluates a company's character, capacity, collateral, and covenants. The fund aims to take advantage of the higher cost of capital for ESG laggard companies and carbon-intensive industries due to regulation.
These sustainable bond initiatives by Brazil, Uruguay, and Rathbones highlight the growing focus on green finance and sustainable development worldwide. [e1697ee9] [4482e865] [42d3b751]