Brazil launches currency hedge program for sustainable investments | Binance to pay $4.3B penalty | Gulf of Aden oil spill caused by Houthi attack

In today’s Portfolio Intelligence Daily, where we highlight under the radar investment themes and idiosyncratic company risks:?

• Brazil launches currency hedge program for sustainable investments
• Binance to pay $4.3B penalty
• Gulf of Aden oil spill caused by Houthi attack

Auquan’s analyst team curates these summaries from our intelligence engine, which uses retrieval augmented generation (RAG AI) to uncover unique insights at scale, typically involving emerging markets, supply chains, financially-material ESG risks, and the impact of regulatory changes.

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Brazil launches currency hedge program for sustainable investments

Brazil unveiled a currency hedging program on Monday to attract foreign investment in sustainable projects.

• The program offers a variety of initiatives and uses Inter-American Development Bank (IDB)-backed securities via Brazil’s central bank to protect crucial environmental investments from the risks of currency exchange rate volatility.
• The Inter-American Development Bank (IDB) will contribute $3.4 billion in derivatives and $2 billion in credit lines to the Brazilian government's foreign exchange hedging plan, according to IDB president Ilan Goldfajn.

Reuters: Brazil unveils FX hedge program for sustainable investments?

Binance to pay $4.3B penalty

A US judge has approved a $4.3 billion settlement with cryptocurrency exchange Binance for violating anti-money laundering and sanctions laws

• Binance pleaded guilty to these charges and will pay $1.8 billion in fines and forfeit $2.5 billion in property.
• They will undergo independent compliance monitoring for up to five years and review their internal systems.
• While accepting responsibility, Binance claims to be making progress in addressing these issues.
• Prosecutors accused Binance and its founder of knowingly ignoring regulations and facilitating illegal transactions.

Select timeline

• February 23, 2024 | US Judge Approves Binance’s $4.3 Billion Settlement Deal (CryptoPotato)
• February 23, 2024 | Judge Approves Binance’s $4.3 Billion Settlement For Anti-Money Laundering, Sanctions Violations (Forbes)
• Novermber 21, 2023 | Binance and CEO Plead Guilty to Federal Charges in $4B Resolution (USDJ)

Gulf of Aden oil spill caused by Houthi attack

A Houthi attack on a cargo ship in the Gulf of Aden has caused a nearly 30-kilometer oil spill, sparking environmental worries of an environmental disaster.

• The attack, targeting a Belize-flagged vessel named Rubymar, forced the crew to abandon the ship and resulted in the oil leak.
• Concerns extend beyond the immediate oil slick, as the ship also carried fertilizer, raising the possibility of a "worsening environmental disaster" if it spills into the Red Sea.
• This incident marks the most serious Houthi attack on ships in the Red Sea since they began their offensive in November.
• An international coalition has responded to the attack, rescuing the crew and monitoring the situation

Select timeline

• February 24, 2024 | Oil spill caused by Houthi attack on ship in Gulf of Aden raises environmental concerns (Jerusalem Post)
• February 24, 2024 | Houthi attack on freighter Rubymar caused significant damage to ship, US says (Reuters)
• February 24, 2024 | US military holds Houthi rebels responsible for attack on ship in Red Sea (TOI)

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