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Brazil funding of green jobs from sustainable bonds off to a sluggish start

Brazil is still in the early stages of funding environmental projects with profits from its initially sustainable sovereign bonds but expects to satisfy due dates in the bonds' terms, the Treasury said on Friday.

Of the 20.5 billion reais ($ 3.6 billion) raised through two bond concerns in November 2023 and June 2024, 9% - or 1.9 billion reais - was assigned to environmental tasks through July, a. Treasury report revealed.

Both issues, which were well gotten by financiers, called. for 50-60% of the funds to go to environmental efforts and. 40-50% to social efforts. The government has 24 months from. the problem dates to put the cash to work.

The Treasury's basic planner of tactical planning for. public financial obligation, Luiz Fernando Alves, informed a press conference that. the timeline will be satisfied.

Implementation has actually been slowed by the procedure of structuring. environmental jobs and carrying funds to them, he stated. The cash streams through a climate fund managed by advancement. bank BNDES.

The government moved 10.4 billion reais to the bank in. April for the work.

Considering that the funds reached BNDES at the end of April, it was. in May and June that tasks began to be structured, said. Alves. The time was brief in between the fund allocation to the. Climate Fund and this entire process.

President Luiz Inacio Lula da Silva has been attempting to. position Brazil, Latin America's biggest economy, as a top. destination for green investment.

Social costs has actually taken in 8.2 billion reais of the bond. earnings.

(source: Reuters)