Suzano raises $500 million in sustainable bonds
In September, Suzano issued a Sustainability-Linked Bond (SLB) with a total value of US$ 500 million, with rates of 2.70% per annum and maturing in seven years. This was the second issue of this type of title by the company, and is linked to goals to reduce water consumption and increase the representation of women in leadership positions.
SLB is one of the most recent bond models linked to the performance of sustainability indicators. The goals established by Suzano in the operation, to be achieved by 2030, are part of the Sustainable Development Goals (SDGs) and are aligned with the company’s projects aimed at sustainable forestry, water management and renewable energies.
Last year, Suzano raised US$ 1.25 billion in bonds and stood out as the second company in the world and the first in the Americas to issue an SLB bond, linked to carbon reduction goals. The company also guaranteed the lowest rate in Brazil’s history for bonds with a 10-year term for settlement. The initiative earned the Environmental Finance’s 2020 Bond Awards, promoted by Environmental Finance, a specialized media in sustainable investments.
Trend in ESG agenda
In its annual report on sustainable finance trends, released at the beginning of the year, Sitawi, a pioneering organization in analysis of social and environmental performance, identified a trend in ESG debt instruments linked to the performance of sustainability indicators. The acronym brings together the concept of good environmental, social and governance practices.
A evidence of the rise of ESG bond market is in its sustainable credit operations report. In 2020, the green bond market surpassed $1 trillion in accumulated funding. In Brazil, this type of issuance reached around US$ 58 billion, in the first half of 2021 alone, almost double the amount for the whole year of 2020.