This is the company's first Green Bond issuance and reinforces its ESG strategy.
State Grid Brazil Holding (SGBH) has completed a fundraising process through the issuance of green bonds through its subsidiary, Silvânia Transmissora de Energia SA (“STE”), totaling R$235 million. The transaction was coordinated by Banco BTG Pactual SA, under the terms of the Brazilian Securities and Exchange Commission (“CVM”) Instruction No. 476, of January 16, 2009, as amended (“Offering”), aligned with the Green Bond Principles, with the issuance of a second-party opinion and future monitoring by SITAWI Finanças do Bem, one of the main external auditors in the sector.
This is the first issuance of simple, non-convertible debentures in a single series by STE, the most recent SPE created by SGBH. The total offering value was R$1,400,000,000, with a rate of CDI + 1.401,0 ...
"This is the first green bond issuance by the State Grid Brazil group, which has increasingly incorporated its ESG practices and principles into its strategies. Social and environmental performance and governance in the implementation of projects are key focuses for us, and consequently, we are interested in green bond issuances for other projects as well," says Luiz Carlos Bettencourt, Deputy CFO of SGBH.
The net proceeds from the Offering will be allocated to the Silvânia project in the state of Goiás. The concession, with a 30-year operating term, was formalized by State Grid Brazil in May 2021, as a result of Aneel's 01/2020 auction. The project aims to strengthen the security and reliability of energy transmission in the National Integrated System (SIN).
The project involves an estimated investment of R$476 million with an implementation period of up to 36 months. It is expected to generate approximately 1,500 direct and indirect jobs in the region, and also anticipates the contracting of local goods and services. Furthermore, the new system ensures greater reliability for the state's energy supply and aligns with State Grid Brazil's mission to provide top-quality electricity transmission systems for all Brazilians.
