- Region: Latin America and the Caribbean
- Untied Loans
March 28, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on March 26 an untied loan agreement totaling 300 million US dollars with Banco Nacional de Desenvolvimento Econômico e Social (BNDES; or Brazilian Development Bank in English). This is one of the first loans that JBIC has provided to the Latin American and Caribbean region under the GREEN Initiative*2 along with the loan agreement which JBIC signed with Corporación Andina de Fomento (CAF) on the same day. This loan was cofinanced with private financial institutions (Mizuho Corporate Bank, Ltd. as lead arranger, Sumitomo Mitsui Banking Corporation (SMBC) and The Bank of Tokyo-Mitsubishi UFJ, Ltd.), with JBIC providing a guarantee for their cofinanced portion.
- The loan will provide funding for environment-related loans focusing on renewable energy projects supported by BNDES in Brazil in an effort to reduce greenhouse gas (GHG) emissions. It is expected to accelerate the implementation of renewable energy technologies and reduce GHG emissions in Brazil. The Government of Brazil has ratified the Kyoto Protocol and other international treaties on climate change, and as its core medium- and long-term environmental policy, it has announced a plan to reduce GHG emissions by accelerating the introduction of renewable energy sources. Thus, this loan is expected to assist Brazil's environmental policy.
- BNDES is Brazil's only policy-based financial institution specializing in providing long-term funds and supports a number of projects in Brazil. At the same time, given its mission which states to foster sustainable development in the Brazilian economy it has been strengthening and promoting environmental conservation efforts by private businesses. For nearly 40 years, JBIC has built a close relationship with BNDES by providing loans to support investments, exports and developing infrastructure in Brazil, as well as technical assistance.
- JBIC is committed to helping preserve the global environment in cooperation with other countries in order to contribute to the sound development of the Japanese and international economies.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information dated April 27, 2010.