The Amazon's Sustainable Cattle Bond
“If you look at the corporate green bond market, more than half of issuance is from utilities. Agriculture has been largely absent in the sustain- able bonds market, and it makes sense to include the sector,” says Anjuli Pandit, sustainability coordinator for the bond and loans business at BNP Paribas. “For one, investors are asking for more diversity.”
Transition bonds may be a way to bring agriculture to the table, and to help educate investors on the cost and importance of transitioning to sustainable farming practices. In July this year, BNP Paribas was a bookrunner alongside ING and Santander for beef supplier Marfrig’s $500 million transition bond.
Brazil’s Marfrig is the world’s second-largest beef supplier, with operations across south America and the US.
And a broader feature on the Amazon and cattle farming from my colleague Rob Dwyer can be found here, including a focus on an impact investment in PECSA.
Photo credit: Rob Dwyer