Brazil will launch a fund for investment in shares in companies committed to efficient management of Greenhouse Gas Emissions (GHG)
15/05/2012 17:11 - Portal Brasil
BNDES Participações S/A (BNDESPAR), part of the Brazilian National Development Bank, filed a request with the Securities and Exchange Commission (CVM) for the register of a Public Offering of shares in the ECOO11 Fund, which is to be listed on the Brazilian iShares Carbon Efficient Index (ICO2) Brasil. The operation, aimed at both retail and institutional investors, will be for an initial offering of R$ 1.5 billion, but may be increased by up to 35% depending on demand.
ETF iShares are indexed funds whose shares are bought and sold in the same way as shares on the stock exchange. They are efficient investment instruments, benefiting investors with instant portfolio diversification, more competitive costs and a high degree of transparency.
The Fund will be composed of shares in companies belonging to the Carbon Efficient Index (ICO2) and the management of the fund will be the responsibility of BlackRock Brasil. BlackRock, the largest independent global fund manager with over US$ 3.5 trillion in assets under its management, holds more than 40% of the global market in ETFs and currently has seven indexed funds bearing the iShares label in Brazil. The public distribution of ECOO1 shares will be coordinated by BB - Banco de Investimentos (Lead Coordinator) and Citigroup Global Markets Brasil, Corretora de Câmbio e Títulos de Valores Mobiliários.
ICO2 was developed from a joint initiative between BNDES and BM&FBOVESPA and is composed of the shares of companies participating in the IBrX-50 that agreed to participate in this initiative by adopting transparent practices with respect to their Greenhouse Gases (GHG) emissions. The ICO2 takes into account their degree of efficiency in mitigating GHG emissions in weighting share values, measured by the ratio between emissions and the company's revenues and their free float (total shares in circulation).