Banco ABC - Social Bond

repaid

The transaction consists of a Local Bond (Letras Financeiras) issuance for the equivalent in Brazilian reais of US$100 million for a tenor of five years bullet. The Letras Financeiras shall be classified as Social Bonds as per the International Capital Market Association’s Social Bond Principles. The proposed financing will contribute to increase access to finance in Brazil by supporting the expansion of ABC’s social portfolio, by focusing its Small and Medium-Sized Enterprises (“SMEs”) strategy. Also, the transaction injects liquidity in this segment in a moment of market turbulence due to the spread of the COVID-19 virus. Finally, the transaction supports the development of the Brazilian capital markets and the sustainable finance segment, as it will be first thematic Letras Financeiras issued in Brazil and may spearhead a new trend in the Brazilian Debt Capital Markets.