Brazil's first waste-to-energy plant will be funded by the BRL395 million green bond issued by Barueri Energia Renovável (URE Barueri).

The issuer is a special purpose entity joint venture between waste treatment companies Sabesp and Orizon Valorização de Resíduos responsible for construction of the plant, which is scheduled to be completed in 2027.

It will process 870 tonnes of municipal solid waste daily to generate 20MW of renewable energy. The issue amounts to 65.83% of the project's expenditure.

"First of a kind issuance in a local currency, thus helping to establish precedence and further development of the sustainable financing market in emerging markets," commented one Environmental Finance Awards judge.

"This transaction provides both renewable energy as well as a high ESG alignment," added another.

BTG Pactual acted as the lead bookrunner, financial adviser and exclusive sustainable finance adviser on the transaction.