Business

Brazil's fintech Pravaler issues social impact bond to finance short-term courses

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

Pravaler's HQ. Photo: Courtesy/Pravaler
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  • 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.

Haroldo Carvalho, Pravaler’s CFO. Photo: Courtesy/Pravaler

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.

READ ALSO: Fintech Pravaler receives BRL 180 million in financing and plans its first acquisition in 2021

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.

READ ALSO: Solfácil: Brazil’s fintech that wants to make solar energy mainstream raises $30 million from QED Investors

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.

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