The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Commodities and net zero drive ESG financing in Latin America

Latin America’s corporates are embracing sustainable local debt financing with enthusiasm. The region’s bankers are betting that it’s going to be as good for bookrunner fees as it promises to be for the environment.


When Caramuru, a large Brazilian commodities trader that specialises in soy and other agricultural commodities, began to assess its options for debt-raising tools last year, it decided to consider green bonds.

To qualify for such a deal, the company ran through more than 5,000 suppliers to document that none of its supply chain was part of deforestation or included modern slavery labour anywhere within its businesses. And this was for a structure that offered opaque cost benefits at best.

“Frankly, the ‘greenium’ [lower financing cost attributed to sustainable bonds] on local debt products that are structured for domestic transactions is not statistically relevant – which is a nice way of saying we don’t see a greenium in Brazil at this stage,” says Frederic de Mariz, head of fintech and ESG (environmental, social and governance) at UBS BB, which worked on the subsequent R$355 million ($72 million) green debenture for Caramuru.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?