Following a growing trend of issuance of green bonds by Brazilian companies, FS Bioenergia is taking an important step by raising interest financing linked to the socio-environmental performance of its operations. In total, there are USD 530 million in Green Bond issues. According to Framework approved, following the Green Bonds Initiative Principles, the funds raised from this operation will be allocated to projects to expand the forest base and bioenergy production assets. The commitments undertaken by FS Bionergia in the issuance of its Green Bonds contribute directly to the goals of the Sorriso PCI Compact, and consequently, to the State PCI Strategy.
The operation consisted of the issuance of different instruments, and the first step was the issuance of Agribusiness Receivables Certificates (CRA), in the amount of BRL 210 million, by Credit Suisse, in February this year. Then, in June, FS issued BRL 140 million in Certificates of Real Estate Receivables (CRI), also with Credit Suisse. And lastly, a bilateral loan with Santander in the amount of BRL 180 million. These last two have linked interests to socio-environmental performance and will be met by the end of the year.
FS is one of the signatories of the Sorriso PCI Compact and is part of the group of founders of the PCI Institute, represented by Unem (National Union of Corn Ethanol). Details about sustainability commitments in their operations, investments and expansion perspectives were presented by the company’s Strategic Development Director, Eduardo Menezes Mota, to the members of the Sorriso PCI Regional Compact, during a virtual meeting held on December 11th.
“We have a close look at the local and state PCI, and we want to increasingly participate in these actions and contribute to the achievement of the goals. We believe that our performance model has already contributed to this and our planning for 2021 is to reinforce this participation even more”, informed Mota.
During the presentation, FS’s director highlighted some measures adopted by the company to ensure responsibility in the production chain, such as the purchase of inputs from properties that comply with the Forest Code. He also said that corn used is a second crop one, in rotation with soybeans, with no need to open new farming areas and taking advantage of inputs, which makes the activity more sustainable.
Under the Sorriso PCI Compact, in addition to investments in the forest base and corn ethanol plant in the region, there have already been discussions about the possibility of partnerships with certified soybean projects, with CAT Sorriso, and for the use of DDG, one of the residues resulting from industrial processing, to produce animal feed. “We want to always have a broader view and care for the community in which we are inserted, in addition to supporting projects that are in line with our vision of institutional sustainability,” he concluded.