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Straits Times
28-04-2025
- Business
- Straits Times
Brazil's government aims to raise $2 billion in financing with new Eco Invest auction
FILE PHOTO: An aerial view shows an area of land cleared for the preparation of pasture which borders with the Amazon rainforest in Mato Grosso state, western Brazil, October 4, 2015. REUTERS/Paulo Whitaker/File Photo BRASILIA - The government of President Luiz Inácio Lula da Silva expects to raise $2 billion in financing for sustainable projects through a new auction to be announced on Monday as part of the Eco Invest Brazil program, focusing on initiatives to recover degraded pastures. According to Brazil Treasury Secretary Rogério Ceron, the country has the capacity to implement the world's largest land-restoration program. "It has a huge environmental impact, enormous international appeal, and many people are seeking us. We aim, in the best-case scenario, to recover around 1 million hectares. It's quite aggressive," said Ceron, who spoke to Reuters before the announcement. The new auction is part of the "blended finance" line of the Eco Invest program, which combines public and private capital to reduce financing costs and stimulate sustainable initiatives in the private sector, while also reducing the risk of exposure to exchange rates. The official announcement of the auction will be made on Monday by the ministries of Finance, Agriculture and Environment. A decree to regulate the auction will be published this week, and the deadline for banks to submit proposals will be 45 days. Although the exact value cannot be disclosed in order not to hinder competition among financial institutions, the auction is expected to provide around $1 billion in catalytic capital from the Climate Fund, with a requirement for leverage of at least one and a half times, the secretary said. The financial institutions offering the highest leverage in private capital will win the auction. So if the auction is successful, at least $500 million in private resources will be added to the $1 billion from the Climate Fund, a total that can increase depending on the competition. Ceron believes there is an appetite for leveraging that would allow financing to include $1 billion in public capital and $1 billion in private resources. According to the Treasury secretary, at least 60% of the leveraged capital will have to come from foreign fundraising, with the remaining 40% possibly coming from domestic resources. The new auction is part of the government's ecological transformation plan and can boost the National Program for the Conversion of Degraded Pastures, which was launched in 2023 with a focus on recovering lands with low productivity, and expanding food production areas without increasing deforestation. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
28-04-2025
- Business
- Reuters
Brazil's government aims to raise $2 billion in financing with new Eco Invest auction
BRASILIA, April 28 (Reuters) - The government of President Luiz Inácio Lula da Silva expects to raise $2 billion in financing for sustainable projects through a new auction to be announced on Monday as part of the Eco Invest Brazil program, focusing on initiatives to recover degraded pastures. According to Brazil Treasury Secretary Rogério Ceron, the country has the capacity to implement the world's largest land-restoration program. "It has a huge environmental impact, enormous international appeal, and many people are seeking us. We aim, in the best-case scenario, to recover around 1 million hectares. It's quite aggressive," said Ceron, who spoke to Reuters before the announcement. The new auction is part of the "blended finance" line of the Eco Invest program, which combines public and private capital to reduce financing costs and stimulate sustainable initiatives in the private sector, while also reducing the risk of exposure to exchange rates. The official announcement of the auction will be made on Monday by the ministries of Finance, Agriculture and Environment. A decree to regulate the auction will be published this week, and the deadline for banks to submit proposals will be 45 days. Although the exact value cannot be disclosed in order not to hinder competition among financial institutions, the auction is expected to provide around $1 billion in catalytic capital from the Climate Fund, with a requirement for leverage of at least one and a half times, the secretary said. The financial institutions offering the highest leverage in private capital will win the auction. So if the auction is successful, at least $500 million in private resources will be added to the $1 billion from the Climate Fund, a total that can increase depending on the competition. Ceron believes there is an appetite for leveraging that would allow financing to include $1 billion in public capital and $1 billion in private resources. According to the Treasury secretary, at least 60% of the leveraged capital will have to come from foreign fundraising, with the remaining 40% possibly coming from domestic resources. The new auction is part of the government's ecological transformation plan and can boost the National Program for the Conversion of Degraded Pastures, which was launched in 2023 with a focus on recovering lands with low productivity, and expanding food production areas without increasing deforestation.
Yahoo
28-04-2025
- Business
- Yahoo
Brazil's government aims to raise $2 billion in financing with new Eco Invest auction
By Bernardo Caram BRASILIA (Reuters) - The government of President Luiz Inácio Lula da Silva expects to raise $2 billion in financing for sustainable projects through a new auction to be announced on Monday as part of the Eco Invest Brazil program, focusing on initiatives to recover degraded pastures. According to Brazil Treasury Secretary Rogério Ceron, the country has the capacity to implement the world's largest land-restoration program. "It has a huge environmental impact, enormous international appeal, and many people are seeking us. We aim, in the best-case scenario, to recover around 1 million hectares. It's quite aggressive," said Ceron, who spoke to Reuters before the announcement. The new auction is part of the "blended finance" line of the Eco Invest program, which combines public and private capital to reduce financing costs and stimulate sustainable initiatives in the private sector, while also reducing the risk of exposure to exchange rates. The official announcement of the auction will be made on Monday by the ministries of Finance, Agriculture and Environment. A decree to regulate the auction will be published this week, and the deadline for banks to submit proposals will be 45 days. Although the exact value cannot be disclosed in order not to hinder competition among financial institutions, the auction is expected to provide around $1 billion in catalytic capital from the Climate Fund, with a requirement for leverage of at least one and a half times, the secretary said. The financial institutions offering the highest leverage in private capital will win the auction. So if the auction is successful, at least $500 million in private resources will be added to the $1 billion from the Climate Fund, a total that can increase depending on the competition. Ceron believes there is an appetite for leveraging that would allow financing to include $1 billion in public capital and $1 billion in private resources. According to the Treasury secretary, at least 60% of the leveraged capital will have to come from foreign fundraising, with the remaining 40% possibly coming from domestic resources. The new auction is part of the government's ecological transformation plan and can boost the National Program for the Conversion of Degraded Pastures, which was launched in 2023 with a focus on recovering lands with low productivity, and expanding food production areas without increasing deforestation. Sign in to access your portfolio
Express Tribune
21-02-2025
- Business
- Express Tribune
$1b climate funding talks with IMF next week
Pakistan had been engaged with the International Monetary Fund (IMF) for acquiring the climate fund and expected $1-1.5 billion support from the global lender, Federal Finance Minister Muhammad Aurangzeb told the media persons on Thursday. Talking informally to reporters after a ceremony in Islamabad, the minister revealed that an IMF mission would visit Pakistan on February 24 for discussions on the Climate Fund, while another mission was expected next month for the half-yearly review of the ongoing Extended Fund Facility. "Discussions will be held with the IMF on the climate fund. The IMF mission is expected to provide $1-1.5 billion in the form of the climate funding," the minister said. "A second IMF mission will come to Pakistan in March for a six-month review," he added. IMF's climate funding takes place from its Resilience and Sustainability Trust, which was created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy. Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation's vulnerability to climate change. According to an announcement, the mission would visit from February 24 to 28 for a "review and discussion" of climate resilience funding. Aurangzeb appeared optimistic about the ongoing IMF programme. "Everything related to the IMF programme is fine," he emphasised. He said that the current account deficit for one month had become negative, but remained positive for seven months period. "The DNA of the economy will be fixed through structural reforms, without this, there is no hope of improving the economy," he said, warning that the growth rate must be increased carefully so that "the boom and bust cycle does not recur". Meanwhile, speaking at a conference on 'Retail Reimagined: Innovate, Collaborate and Thrive', organised by The Pakistan Retail Business Council (PRBC), the minister expressed concern over the retail sector's lack of contribution to the national exchequer. "The retail sector, which contributes a significant 19% to the GDP, is paying a mere 1% in taxes," he said, adding that the government had been engaging with the retail sector, requesting them to formalise their businesses and pay their due share of taxes. He warned that the disproportionate burden of taxes on the manufacturing, services industry, and salaried class was unsustainable. "We need to bring other segments into the tax net," he added. "For national interest, we cannot afford to have people taking a free ride anymore." He said that a major overhaul of the taxation system was under way, with the focus on end-to-end digitisation to promote transparency, reduce leakage, and combat corruption. "This streamlined [faceless customs] process has eliminated the money culture, fostering a more efficient tax authority." He said, there has been Rs9.4 trillion in cash circulation, which needed to be brought into the formal economy. He acknowledged that this could not be done overnight, however, the government was determined to move in the right direction. In his speech the minister highlighted that the economy had taken a significant turn for the better, with macroeconomic stability firmly in place as currency stabilised, foreign exchange reserves increased and inflation receded and the policy rate decreasing significantly, with Kibor receding from 23% to 11%. "These positive developments have not gone unnoticed, as foreign investors are once again taking notice of Pakistan's economic potential. Institutional flows are returning to the country, with investments pouring in on both the debt and equity sides," Aurangzeb said.
