Brazil's National Treasury published its second Allocation and Impact Report — the RAI 2025 — on 14 November 2025, providing a detailed breakdown of how proceeds from its sovereign sustainable bonds issued in November 2023 and June 2024 have been deployed across green and social expenditure categories. The report offers the most comprehensive account yet of Brazil's sovereign sustainable-debt programme and reinforces the Treasury's commitment to transparent reporting as a pillar of that framework.
The November 2023 bond has reached full allocation: 100% of its proceeds have been disbursed, with 60% directed to green expenditures and 40% to social expenditures. Those disbursements were executed between January 2023 and June 2025, spanning a period of roughly two and a half years across multiple federal budget cycles. The June 2024 bond, which is more recent, has had 65.5% of its proceeds accounted for in this report, with the remaining 34.5% deferred to the next annual instalment, expected in 2026.
GREEN EXPENDITURES LED BY NATURAL RESOURCES
On the environmental side, the Sustainable Management of Living and Natural Resources was the dominant green-expenditure category, accounting for 13.6% of total proceeds. Renewable Energy followed at 11.2%. For the June 2024 bond, green expenditures represented 25.2% of proceeds, equivalent to BRL 2.73 billion — a substantial deployment into climate-aligned public spending despite the partial nature of reporting at this early stage of the bond's lifecycle, with further green allocations to be disclosed once expenditures are confirmed in the 2026 reporting cycle.
The RAI 2025 frames these green allocations within Brazil's broader fiscal sustainability agenda, as the Treasury seeks to align sovereign debt issuance with the country's environmental commitments and internationally recognised green-bond standards. Offshore investors, particularly those operating under environmental, social and governance mandates, rely on the RAI series to assess whether proceeds are being deployed in a manner consistent with the eligibility criteria set out at issuance. The level of category-level granularity provided in this edition is intended to meet that demand and to strengthen the credibility of Brazil's sovereign green label in international capital markets.
SOCIAL ALLOCATION TARGETS POVERTY REDUCTION
Social expenditures accounted for 40% of the November 2023 bond's proceeds, with Combating Poverty representing the dominant sub-category at 36% of total proceeds — a figure that reflects the scale of federal budget programmes directed at income support and food security. Access to Basic Infrastructure accounted for a further 4%. For the June 2024 bond, social expenditures have reached BRL 4.33 billion, again representing 40% of proceeds reported to date — a proportion identical to the prior issuance and indicating a consistent allocation framework across both bond vintages.
The uniformity of the 60-to-40 green-to-social split across both bonds provides a degree of predictability for investors seeking to track the programme's evolution. The Treasury noted that the 34.5% of June 2024 proceeds still to be accounted for is expected to cover additional expenditures in both green and social categories, with full disclosure planned for the RAI 2026 publication. Brazil's sovereign sustainable-bond framework remains one of the largest and most closely watched among emerging-market governments, and the RAI series represents the primary channel through which the Treasury communicates its deployment and impact results to the global investor community.