Verified by Bureau Veritas Certification Brasil, company proves its socio-environmental nature
Tanac published its second Green and Social Bonds reports. With this, the company confirms the issuance of a CRA (Agribusiness Receivables Certificate) for private placement of R$ 195 million reais, based on a pre-emission opinion and another retroactive post-emission opinion (called SPO).
This means that the company proves its socio-environmental character, through verification by Bureau Veritas Certification Brasil (“Bureau Veritas”), for its committed performance to sustainable forest management, negative carbon and community development. Such initiatives are part of the company’s ESG agenda,
https://www.tanac.com.br/tanac-releases-esg-agenda/?lang=en with objectives in the areas of Environmental Responsibility, Social Responsibility and Management Responsibility.
Agribusiness Receivables Certificates are fixed income securities created with the objective of being a complementary source of financing for agribusiness. Known as “green bolds”, they are debt securities destined to projects beneficial to the environment and that make it possible to bring farmers closer to the growing demand of impact investors.
In these operations, the farmer assigns his agribusiness receivables to a securitization company, which will issue the CRAs and make them available for trading in the capital market. In turn, the funds raised by the securitizer in the capital market will be used to pay the farmer for the assigned receivables. At the end of the process, through the CRA issue, the CRA issuer can obtain an anticipation of its receivables in exchange for payment of a fixed fee to investors.
This type of operation can be used for financing or loans related to the production, commercializion, processing or industrialization of products, agricultural supplies or machinery and implements used in agricultural production, through social and environmental proof that meet the requirements of this credit modality.
International recognition
Tanac’s environmental initiatives have been recognized internationally. Recently, the company was presented at COP27 as one of the Brazilian agribusiness organizations that most contributes to the low-carbon economy. Due to its Forest Development Program and increased planting of Black Wattle in the country, the company proved to be negative carbon, by removing seven times more CO2 from the atmosphere than it emits in the whole operation, analyzing the three scopes that involve the entire production chain.
The responsibility to conduct the activities in a responsible way, minimizing the impacts on the environment and promoting the socioeconomic development of the communities can be evidenced through several certifications, which prove from the operation to the origin of the production of the production and the commitment to sustainability.
