The international market for Green Finance has surpassed the barrier of US$ 1 trillion and Brazil should have a large share of it due to its relevance in agribusiness.
Green Finance aims to finance certified projects that have a positive environmental and climate impact.
In Brazil, Agribusiness Receivables Certificates (CRAs) will be one of the key means of accessing the Green Finance market. Even more so with the new Agri Law (13,986), which authorized the issuance of CRAs in foreign currency.
Today CRAs represent one of the main capital market instruments available to agribusiness companies to raise funds through a public offering. In the first half of 2020, BR$ 5.8 billion of these securities were issued.
As a securitizable security, CRAs are backed by contracts or CPRs (Rural Product Note) that represent a credit right of the originating company.
The Agro Law now allows the issuance of CPR in foreign currency, which, consequently, enables the issuance of CRAs in foreign currency. Such innovation will provide Brazilian agribusiness companies access to institutional investors, funds and foreign banks.
The fact is that with the growth of the international Green Finance market and the introduction of CRAs in hard currency, companies in the agri chain will have new financing options for their projects that have a positive environmental and climate impact.