January 15, 2016
While most Brazilian issuers were shunned from the capital markets in the first half of 2015, food producer BRF managed to jump through a rare window to execute a substantial liability management exercise that included issuing a green bond with record pricing.
BRF hit the euro market in June 2015 with a €500 million 2022 bond sale, Latin America’s second-ever “green” debt instrument.
Energía Eólica had sold a similar transaction — the proceeds of which must be used for environmentally sustainable operations — in December 2014.
The timing of the issue was impeccable. In the five days prior to issuance, euro-swaps rallied by eight basis points allowing for BRF to lock in low rates. The Baa3/B
Timing, significance and novelty highlight the protein producer’s transaction in a challenging market for Brazilian borrowers