Brazil readies long-dated FX hedging scheme for green projects

- By Cole Lipsky
- 21 Mar 2024

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

The Inter-American Development Bank, alongside the government of Brazil, has announced a new structure that involves lending out its AAA credit rating to foreign investors to provide them with access to cheaper long-dated foreign exchange hedges for projects in the country.

While liquidity for US dollar/Brazilian real hedges is scarce beyond the one-year point, the new structure allows Brazilian banks to tap the IDB’s credit rating to offer FX derivatives hedges to foreign investors in local

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@fx-markets.com