Central Bank of Brazil introduces sustainable bond identification requirement in foreign capital reporting

On October 1, 2025, Resolution No. 492 of the Central Bank of Brazil (“BC”), dated August 14, 2025, came into effect.

This resolution amends BCB Resolution No. 278, dated December 31, 2022, and BCB Resolution No. 279, dated December 31, 2022, to provide for the sustainable bonds category requirement in:

• The reporting of foreign capital transactions in the Foreign Capital Reporting System for External Credit (SCE-Crédito); and
• The declaration of Brazilian capital abroad (DCBE).

According to the Central Bank, information on foreign credit transactions through sustainable bonds is essential to establish the statistical foundation of climate finance. It also contributes to the monitoring and management of climate and socio-environmental risks. This represents progress in the BC’s environmental, climate, social, and governance agenda and aligns Brazil with international guidelines by fulfilling the G20’s recommendation on climate finance.

Key amendments to BCB Resolution No. 278/2022 effective as of October 1, 2025:

Inclusion of four new types of sustainable debt securities in SCE-Crédito:

• Green Bonds: Aimed specifically at environmental projects.
• Social Bonds: Aimed specifically at social benefits.
• Sustainability Bonds: Aimed specifically at both social and environmental benefits.
• Sustainability-Linked Bonds: Funds raised may be allocated freely but are tied to predefined sustainability commitments aimed at improving environmental and social conditions or both.

External credit transactions involving sustainable debt securities that do not meet the current reporting threshold – set at USD 1 million or its equivalent amount in other currencies – are not subject to reporting in the SCE-Crédito system.

Key amendments to BCB Resolution No. 279/2022 effective as of October 1, 2025:

Inclusion of sustainable debt securities issued by foreign companies and acquired by Brazilian investors in the reporting requirements under the Declaration of Brazilian Capital Abroad (DCBE). These securities are classified as: Green, Social, Sustainability, and Sustainability-Linked Bonds.

Demarest’s Banking and Finance team is available to provide further clarifications on this topic.