- Pravaler provides credit for financing courses and degrees;
- With the fund, the fintech expects to finance BRL 1 billion by 2025.
Brazilian fintech company Pravaler announced that it has issued a BRL 20 million Social Bond. The debenture issue is a way to raise money from market investors in Brazil. The bond is based on the Social Bond Principles (SBP), which signals that the company follows standards of proper principles and guidelines for performance in social impact and transparency.
According to Haroldo Carvalho, Pravaler’s CFO, the funding done through the issue of debentures labeled as Social Bond is different from the investments in FIDC (a type of fund composed of receivables of different kinds of issuers widely used in the Brazilian credit market). This debenture accepts professional investors only.
The fintech does not disclose the yielding and terms of the investment, since the debenture is private. This was the first bond debenture held by Pravaler together with Vert. “We are looking to expand by adapting according to the capital needs of the products. We already have made more than 35 FIDCs issues,” says Carvalho.
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Pravaler provides credit for financing courses and degrees. The funding through the debenture will be used to finance the credit product for short courses focused on helping Brazilians professional relocation.
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With the amount, the fintech expects to finance BRL 1 billion by 2025. “The work done by Pravaler is basically composed of the requirements for issuing a social bond. Therefore, thinking that the development of this project should bring benefits and contribute to social development, we opted for an issue that reinforces this purpose and the short courses as another vein of growth for the company,” said Bruna Silva, Pravaler’s Treasury and IR Manager, in a press release.