RCF wins Green Bond Initiative of the Year

The Responsible Commodities Facility, created by BVRio Strategic Partner, Sustainable Investment Management (SIM) has been named ‘Initiative of the year – Green Bond’ by Environmental Finance magazine.

The green bond designed by the RCF is the first of its kind: the first dollar-denominated green CRAs (Certificates of Receivables from the Agribusiness) ever issued and registered in the Vienna Bourse. 

The CRAs from this first pilot issuance were subscribed by UK supermarkets Tesco, Sainsbury’s and Waitrose. 

The RCF green CRAs were issued by Opea Securitizadora, who bundled a pool of agricultural loans made to 32 farms originated by Traive Capital.

The US$ 11 million raised was used to provide low interest credit lines to soy farmers that commit to deforestation and conversion-free soy cultivation in the Brazilian Cerrado, resulting in a significant area of conservation of native vegetation and carbon stocks.

Monitoring of environmental obligations and impacts was conducted by the teams at SIM and BVRio, and independently monitored by EarthDaily Agro. A full impact report will be issued next month.

The methodologies used for impact quantification and monitoring reports were reviewed by an Environmental Committee, for which BVRio provides the secretariat function, and includes; The Nature Conservancy, Conservation International, WWF Brasil, UN Environment, IPAM, Proforest. 

“We would like to thank all our delivery partners, the RCF Environmental Committee, and our initial investors for their support in creating this initiative”, said Pedro Moura Costa Founder and Director of SIM and the RCF. “This award confirms our view of the potential of green bonds as a source of finance for sustainable agriculture.” 

The RCF is a member of the Innovative Finance for the Amazon, Cerrado and Chaco initiative, and a landscape initiative of the Forest Positive Coalition of the Consumer Goods Forum.