The Federative Republic of Brazil announced this month its first external sustainable bond fundraising for USD 2 billion to foster environmental and social projects in the country. Sovereign bonds play a vital role in governments' financial management, enabling them to obtain resources to finance public expenditures, address budget deficits, and promote economic development.

Sovereign bond issuances not only provide a stable source of financing but also contribute to the development of financial markets, establish the country's credibility in international markets, and diversify financing sources, ensuring flexibility in debt management. In this context, by successfully raising international funds for the Brazilian government's first public funding to support environmental and social expenditures, the National Treasury created a benchmark for Brazil in the international capital market with a sustainable focus.