Brazil sustainable securitisation

This report by the Climate Bonds Initiative provides an overview of the sustainable asset-backed securities (ABS) market in Brazil as of Q3 2022. It examines the regulatory framework, the role of various securitisation instruments like CRAs and CRIs, and the potential for these tools to scale investment in small-scale sustainable projects, particularly in agriculture and renewable energy.

• By 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 is the second largest source of GSS+ debt in the region and leads the LAC market in sustainability-linked and transition instruments with a 60.7% share.
• The green label is the most prominent in Brazil's sustainable securitisation market, accounting for 70% of volumes (USD 868 million). Agribusiness Receivables Certificates (CRAs) are the dominant instrument, representing 91% of green ABS volumes and primarily financing agriculture, forestry, and biofuel production.
• Sustainability-linked instruments represented the largest share of all thematic deals in Brazil as of Q3 2022, at 50.6% with USD 16.5 billion in volume. This segment is dominated by non-financial institutions, which contributed 91% of the issued amount.
• Brazil is the only country in the LAC region to have originated transition bonds. These instruments, issued between 2019 and 2020 by non-financial corporates, make up 2% of the Brazilian GSS+ market.
• 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 easing balance sheets, scalability of the local GSS+ debt market, and the ability for financial entities to leverage lending capacity by offloading portfolios.
• The Brazilian securitisation market is expanding through new regulatory frameworks, such as Law n. 14,430/22 (the Brazilian Securitisation Framework), which introduced Receivables Certificates (CRs). CRs are expected to increase funding for sectors like sanitation, infrastructure, and education because they are cheaper and require fewer service providers than Credit Rights Investment Funds (FIDCs).

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} }