{"id":4213,"date":"2025-08-19T00:00:00","date_gmt":"2025-08-19T03:00:00","guid":{"rendered":"https:\/\/www.vieirarezende.com.br\/vr-insights\/brazils-central-bank-issues-rules-for-sustainable-bonds-in-cross-border-transactions\/"},"modified":"2025-08-19T00:00:00","modified_gmt":"2025-08-19T03:00:00","slug":"brazils-central-bank-issues-rules-for-sustainable-bonds-in-cross-border-transactions","status":"publish","type":"vr_insights","link":"https:\/\/www.vieirarezende.com.br\/en\/vr-insights\/brazils-central-bank-issues-rules-for-sustainable-bonds-in-cross-border-transactions\/","title":{"rendered":"Brazil\u2019s Central Bank Issues Rules for Sustainable Bonds in Cross-Border Transactions"},"content":{"rendered":"<p>On August 14, 2025, the Central Bank of Brazil (BCB) issued <a href=\"https:\/\/www.bcb.gov.br\/estabilidadefinanceira\/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20BCB&amp;numero=492\">Resolution No. 492<\/a>, introducing relevant changes to its regulations on foreign capital in Brazil (<a href=\"https:\/\/www.bcb.gov.br\/estabilidadefinanceira\/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20BCB&amp;numero=278\">Resolution No. 278\/2022<\/a>) and Brazilian capital abroad (<a href=\"https:\/\/www.bcb.gov.br\/estabilidadefinanceira\/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20BCB&amp;numero=279\">Resolution No. 279\/2022<\/a>). The update sets specific rules for the issuance and reporting of sustainable bonds in international markets.<\/p>\n<\/p>\n<p><strong>1. Foreign Credit Operations<\/strong><\/p>\n<p>Resolution No. 492 expands the scope of foreign credit operations by including sustainable bonds as a regulated category. Issuers can now structure the following types of instruments under BCB rules:<\/p>\n<ul role=\"list\">\n<li>Green Bonds \u2013 financing projects with environmental benefits;<\/li>\n<li>Social Bonds \u2013 financing projects with social impact;<\/li>\n<li>Sustainability Bonds \u2013 financing projects with combined social and environmental benefits; and<\/li>\n<li>Sustainability-Linked Bonds (SLBs) \u2013 proceeds are unrestricted, but issuers commit to achieving pre-defined sustainability targets.<\/li>\n<\/ul>\n<p>For transactions equal to or above USD 1 million, issuers must report to the BCB the specific bond category used.<\/p>\n<p>Additionally, the Resolution requires that conversions between foreign direct investment and foreign credit (and vice versa), as well as between different types of external credit, be reported in the Central Bank\u2019s SCE-Credit system within 30 days.<\/p>\n<\/p>\n<p><strong>2. Brazilian Capital Abroad<\/strong><\/p>\n<p>Resolution No. 492 also extends reporting obligations for Brazilian investors holding assets overseas. From now on, sustainable debt securities issued by non-residents must be reported to the BCB when acquired by Brazilian individuals or companies.<\/p>\n<p>The same four categories of sustainable bonds apply, ensuring consistency with the framework for foreign credit operations.<\/p>\n<\/p>\n<p><strong>3. Implications for Investors and Issuers<\/strong><\/p>\n<p>These changes mark a regulatory milestone for sustainable finance in Brazil. By aligning with international best practices on disclosure and transparency, the new framework provides greater legal certainty for Brazilian issuers seeking to access the global sustainable bond market. At the same time, it consolidates the ESG taxonomy applicable to both domestic and cross-border transactions.<\/p>\n<p>Resolution No. 492 will take effect on October 1, 2025.<\/p>\n<p>Alert produced by <a href=\"https:\/\/www.vieirarezende.com.br\/team\/roberto-vianna\"><strong>Roberto Vianna<\/strong><\/a> (partner) and <a href=\"https:\/\/www.vieirarezende.com.br\/team\/augusto-flaquer\"><strong>Augusto Flaquer<\/strong><\/a> (associate) of the <a href=\"https:\/\/www.vieirarezende.com.br\/practice-areas\/banking-finance\">Banking &amp; Finance<\/a> practice.<\/p>\n","protected":false},"template":"","categories":[52],"class_list":["post-4213","vr_insights","type-vr_insights","status-publish","hentry","category-alerts"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.vieirarezende.com.br\/en\/wp-json\/wp\/v2\/vr_insights\/4213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vieirarezende.com.br\/en\/wp-json\/wp\/v2\/vr_insights"}],"about":[{"href":"https:\/\/www.vieirarezende.com.br\/en\/wp-json\/wp\/v2\/types\/vr_insights"}],"wp:attachment":[{"href":"https:\/\/www.vieirarezende.com.br\/en\/wp-json\/wp\/v2\/media?parent=4213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vieirarezende.com.br\/en\/wp-json\/wp\/v2\/categories?post=4213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}