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Brazil’s CMN Authorizes Equity Investments and Finalizes Eco Invest Brasil Rules

The move provides legal certainty for new auctions through remuneration caps, deadlines, tighter accountability.

Overview

  • The National Monetary Council approved a resolution permitting participation societária (equity) operations within Eco Invest Brasil, including the use of investment funds.
  • The decision completes financial regulation for all program sublines and formalizes liquidity and foreign-exchange hedge mechanisms in line with existing blended-finance and project-structuring rules.
  • The new framework sets deadlines to prove equity contributions and caps remuneration at up to 4% a year for financial institutions and 1% a year for the Eco Invest line in equity-focused auctions.
  • The rules take effect upon publication in the Diário Oficial da União, with stronger accountability for breaches by participating financial institutions.
  • Coordinated by the Finance and Environment ministries, the program seeks to mobilize private capital for the green transition, following an August auction that drew R$17.3 billion in demand and could unlock R$31.4 billion for land restoration.