This month, the Federative Republic of Brazil announced its first external funding of sustainable bonds worth USD 2 BI to promote environmental and social projects in the country. Sovereign funding plays a vital role in the financial management of governments, allowing them to obtain resources to finance public expenditure, deal with 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 sources of financing, ensuring flexibility in debt management. In this context, by successfully achieving the first public fundraising of international resources to allocate to the Brazilian government's environmental and social expenditures, the National Treasury created a benchmark for Brazil in the external capital market with a sustainable bias.
