BRASILIA, Reuters Brazil raised 2 billion on Monday with its firstever 39;green39; bond issuance, part of an effort to set a benchmark for the private market while channeling funds toward the government39;s ambitious sustainability agenda.

The sevenyear bonds featured a 6.5 yield, said Finance Minister Fernando Haddad, confirming details reported earlier by Reuters.

Speaking to reporters, Haddad described the outcome as quite significant, emphasizing that the spread of the operation was comparable to those obtained by investmentgrade countries.

Demand for the bond far outstripped its volume, with the order book nearing 6 billion, the Treasury said in a statement.

The final allocation saw substantial participation from nonresident investors, it added, with approximately 75 originating from Europe and North America, while Latin America, including Brazil, accounted for the remaining 25.

A source familiar with the operation, who had spoken on condition of anonymity, stressed that the spread was much lower than what the government got for its conventional 2.25 billion issuance in April.

At this rate of 6.5, we are trading only 15 points above a Mexican bond, which is investmentgrade, said the source.

By early 2016, Brazil had lost all its investmentgrade scores after a deep economic recession and political crisis at the end of a global commodity boom.

Although ratings agency Fitch upgraded Brazil39;s credit rating in July and SP improved its outlook for the country…