DG firm Faro Energy issues Brazil's 1st solar green bond

Distributed solar energy company Faro Energy announced on Tuesday it has issued the first certified green bond for solar energy in Brazil.

The proceeds from the bond will be used to finance distributed generation (DG) solar projects across the country. Innovative green finance mechanisms such as green bonds will be transformational for the solar DG sector in Brazil over the coming years, Faro Energy CEO, Sarah Chapman said.

Prior to this initiative, certified green bonds issued in Brazil were only for wind projects, with 1.3 GW backed in 2017 through the Brazilian Development Bank (BNDES), and the local transmission sector, where local ISA CTEEP raised BRL 621 million (USD 162.4m/EUR 138.2m) in May of this year.

This bond has been verified by Bureau Veritas and Certified according to the Climate Bond Standard & Certification Scheme, the company noted.

Eversheds Sutherland advised Faro Energy on the private placement.

“Faro Energy has successfully demonstrated that distributed solar financing at scale without the assistance of development finance institutions has moved from a possibility to something which really works. We congratulate the team at Faro for developing a new investor base and making this first-in-country transaction happen, and we look forward to continuing the journey as further energy and infrastructure opportunities take off across Latin America,” Mark Dennison, finance partner, Eversheds Sutherland said.

(BRL 1 = USD 0.26/EUR 0.22)

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