- Region: Latin America and the Caribbean
- Untied Loans
March 30, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 27 a loan agreement for setting up a credit line (Credit Line) totaling up to USD150 million (of which JBIC's portion is USD75 million) with Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Brazilian Development Bank. This credit line is cofinanced with Mizuho Bank, Ltd. (lead-arranger), with JBIC providing a partial guarantee for the cofinanced portion.
BNDES is Brazil's only policy-based financial institution specializing in providing long-term funds. Given the mission of fostering sustainable development in the Brazilian economy, BNDES is actively supporting environment-related projects harnessing renewable energy. JBIC and BNDES have built up a close cooperative relationship for about 50 years, with JBIC providing loans and technical assistance to projects in such areas as industrial investment, export promotion, and infrastructure development in Brazil.
The Brazilian government also announced the greenhouse gas (GHG) reduction plan in which the promotion of adopting renewable energy is the focus of the medium to long-term environmental policy. In this context, this loan is expected to help reduce GHG emissions in Brazil as well as provide opportunities to propagate in Brazil, internationally acclaimed Japanese advanced environmental technologies. It is also compatible with the Japanese government's Actions for Cool Earth (ACE), the proactive diplomatic strategy for countering global warming, announced in November 2013.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with overseas government-affiliated financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 See Information on April 27, 2010
- *2 See Press Release on March 28, 2011
- *3 See Press Release on March 28, 2014