State Grid Brazil issues its first green bond

State Grid Brazil Holding (SGBH), a company in the Brazilian electricity sector and local subsidiary of State Grid Corporation of China (SGCC), issued a green bond through its subsidiary Silvânia Transmissora de Energia SA (STE) for a total amount in reais equivalent to approximately USD 45 million. The proceeds will be used for the Silvânia project, which aims to improve the safety and reliability of power transmission in Brazil’s Integrated National System.

This is STE’s first issue of simple, non-convertible, single-series bonds, with a CDI+ 1.40% p.a. rate and maturing in January 2025. The operation was coordinated by Banco BTG Pactual SA, under the terms of the Instruction of the Securities and Exchange Commission (CVM) aligned with the Green Bond Principles, with the issuance of a State Grid Brasil Holding opinion and a second opinion and future monitoring by SITAWI Finanças do Bem, one of the main external verifiers in the sector.