Brazil sustainable securitisation

The report analyzes Brazil's sustainable securitisation market, highlighting the role of Agribusiness Receivables Certificates (CRA) and Real Estate Receivables Certificates (CRI) in funding green and social projects. It identifies a significant opportunity to use ABS to aggregate small-scale sustainable projects, particularly in agriculture and renewable energy, to attract institutional capital.

• As of the end of Q3 2022, Brazil's cumulative labelled debt reached USD 32.6 billion, representing 22.7% of the Latin American and Caribbean (LAC) market. Brazil leads the LAC region in transition and sustainability-linked instruments, holding a 60.7% share.
• The green label is the dominant segment of Brazil's sustainable securitisation market, accounting for 70% of volumes (USD 868 million). Within this niche, Agribusiness Receivables Certificates (CRAs) are the primary instrument, representing 91% of green ABS volumes and focusing on agriculture, forestry, and biofuel production.
• Sustainability-linked instruments represent the largest overall share of Brazil's thematic debt at 50.6% (USD 16.5 billion). While corporate deals dominate, sustainability-linked ABS entered the market in 2021 via JBS S.A. and Dori Alimentos CRAs, though these represent only 1% of the total sustainability-linked volume.
• Securitisation offers five primary benefits for issuers: access to debt capital markets as an alternative to banks, lower cost of capital, increased market competitiveness by freeing up balance sheets, scalability of the local GSS+ market, and the ability for financial entities to recycle lending capacity.
• The Brazilian regulatory environment has expanded to include new instruments like Receivables Certificates (CRs) under Law n. 14,430/22. CRs are expected to grow in sectors such as sanitation, infrastructure, and education because they are cheaper to structure than Credit Rights Investment Funds (FIDCs).
• There is significant untapped potential for 'dispersed' CRAs to provide financing to small-scale producers; currently, 90% of structured agribusiness debt uses 'corporate' CRAs. Aggregating small projects into GSS+ securitisations could unlock private capital for waste management, green buildings, and urban mobility.
• Climate Bonds identifies three key recommendations to boost the market: leveraging the role of securitisation through better data and education, identifying sustainable portfolios in collaboration with securitisation companies, and accelerating supportive policies such as green procurement and de-risking facilities.

APA

Ambrosano, J., & Borges, S. (2023). Brazil sustainable securitisation. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_bra_sec_2022.pdf

Chicago

Ambrosano, Julia, and Sofia Borges. Brazil sustainable securitisation. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/cbi_bra_sec_2022.pdf.

Wikipedia

{{cite report |last1=Ambrosano |first1=Julia |last2=Borges |first2=Sofia |title=Brazil sustainable securitisation |publisher=Climate Bonds Initiative |date=March 2023 |url=https://www.climatebonds.net/files/documents/publications/cbi_bra_sec_2022.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ambrosano2023brazil, author = {Ambrosano, Julia and Borges, Sofia}, title = {{Brazil sustainable securitisation}}, institution = {Climate Bonds Initiative}, year = {2023}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/cbi_bra_sec_2022.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }