BTG Pactual and BRK announce the first blue debenture issuance of the private sector in Brazil

SÃO PAULO, Nov. 17, 2022 /PRNewswire/ -- BTG Pactual, the largest investment bank in Latin America, acted as lead coordinator and project finance advisor on the first blue debenture issuance in Brazil, in the private sector of Latin America, and the first to market in the sanitation segment globally. The R$ 1.95 billion offer with a 20-year term, was issued by BRK Ambiental Região Metropolitana de Maceió S.A and will benefit more than 1.5 million people who live in and around the city of Maceió. The project was developed by BRK Ambiental, one of Brazil's largest private sanitation companies.

Blue bonds are debt securities issued specifically for funding projects with environmental benefits linked to preserving water resources. In this case, the funds will be used for paying the required grant for universalizing sanitation services in Maceió's metropolitan region. "This issuance is the result of the sanitation market's maturation in the last two years, which has provided greater legal certainty to operators, such as BRK, who are committed to universalizing services in Brazil", says BRK Ambiental CFO, Felipe Cunha.

"At BTG Pactual, we have carried out consistent and pioneering activities in the capital market within the ESG scope. We are proud to take another step in this agenda, and to be the first lead coordinator bank of a blue bond transaction for the private sector in Brazil, stimulating the maturation of the domestic market by arousing investors' appetite for allocations like this one", says Patrícia Genelhú, Head of Sustainable and Impact Investing at BTG Pactual.

The final orderbook demand was over R$ 3bn (1,6x oversubscription) and was composed of very high-quality institutional and retail investors.

"Morningstar Sustainalytics has reviewed BRK's Blue Bond Framework, and believes it is credible, impactful and aligns with international market principles and standards," said Sophia Velissaratou, Director of Sustainalytics' Corporate Solutions.  "The bond structure highlights BRK's intent to follow Global Guidance on Blue Bonds, and the use of proceeds have the potential to improve access to clean water and sanitation". 

"By increasing sanitation and waste water treatment, this Blue Bond aims to reduce water and ocean pollution as well as improve the sanitary conditions in the communities of Maceio. BRK's Blue Bond highlights important action in line with the UN Global Compact's Sustainable Ocean Principles", said Suzanne Johnson, Senior Advisor, UN Global Compact, Ocean Stewardship Coalition.