Fourth Credit Line for BNDES under GREEN Operations
Supporting Renewable Energy Projects in Brazil

• Region: Latin America and the Caribbean
• Environment
• Untied Loans

1. The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement to set up a credit line (Credit Line) totaling up to USD100 million (of which JBIC's portion is USD50 million) with Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Brazilian Development Bank. This credit line is cofinanced with Mizuho Bank, Ltd. (MHBK; lead-arranger) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), with JBIC providing a partial guarantee for the cofinanced portion.
    
2. This credit line is intended to finance, through BNDES, environment-related projects focusing on renewable energy in Brazil, including wind and biomass power generation projects, as part of operations under GREEN operations.^*1  This loan follows loans made to BNDES in March 2011,^*2  March 2014,^*3  and March 2015.^*4
    
3. 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 over 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.
    
4. The Brazilian government also announced the greenhouse gas (GHG) reduction plan, in which promotion of the adoption of 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 internationally acclaimed Japanese advanced environmental technologies in Brazil. 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. Moreover, this year is the 120th anniversary of the establishment of diplomatic relations between the two countries, and the support of the environment-related project in Japan by JBIC, a policy-based financial institution wholly owned by the Japanese government, will deepen further relations between the two countries based on the mutual understanding for preserving the global environment.
    
5. 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 programs for structuring projects, and performing its risk-assuming function.

Note

1. *1 See Information on April 27, 2010
2. *2 See Press Release on March 28, 2011
3. *3 See Press Release on March 28, 2014
4. *4 See Press Release on March 30, 2015