23 de December de 2020

Grupo Boticário pioneers in sustainability linked bond

Cosmetics company issues debt bond linked to sustainable goals in the local market, in an issue coordinated by Itaú BBA

Cosmetics company issues debt bond linked to sustainable goals in the local market, in an issue coordinated by Itaú BBA

The Boticário Group, in partnership with Itaú BBA, has issued bonds linked to sustainable goals, called Sustainability-Linked Bonds or “SLBs.” They aim to strengthen the commitment to improving business sustainability results by 2025 and reinforce its commitment to best ESG practices.

With a value of 1 billion BRL, the papers represent the role that Grupo Boticário fulfills in favor of a sustainable future. The company – which has maintained the Grupo Boticário Foundation for Nature Protection for 30 years – will be the first in the beauty sector to issue an ESG title in Latin America. Grupo Boticário will also be the first company to carry out this type of issue in the local debt market.

“The ESG debenture market has great potential to stimulate and direct resources for sustainable advances in the country and around the world. The unprecedented nature of this financial operation is an important step to strengthen practices for the growth of society with investments aimed at actions that contribute to generating value for the business and its stakeholders, increasing the population’s quality of life and preserving the environment,” says Carolina Maestri, manager of Corporate Sustainability at Grupo Boticário.

The operation is also unprecedented for Itaú BBA in the local market. Although issuing debt is typical for the bank, the issuance of ESG securities in the SLBs modality will be carried out for the first time by the Brazilian market entity.

“Boticário’s operation is an important milestone in this sense, as it represents the first of many SLBs emissions that we intend to do in the local market,” says Felipe Wilberg, Director of Fixed Income and Structured Products at Itaú BBA.

The sustainable goals of this title aim to ensure, by 2025, that 100% of renewable electricity consumption in Grupo Boticário’s factories in São José dos Pinhais (PR) and Camaçari (BA) and in Registro (SP) distribution centers and São Gonçalo dos Campos (BA). In addition to energy, the commitment will also ensure that 100% of solid waste is recycled in operations, including recycled, reused, and co-processed goods.



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