- Region: Latin America and the Caribbean
- Environment
- Untied Loans
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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on September 19, 2018, 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 co-financed with Mizuho Bank, Ltd. (lead-arranger) and The Bank of Saga Ltd., with JBIC providing a partial guarantee for the co-financed portion.
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This credit line is intended to finance, through BNDES, environment-related projects focusing on renewable energy in Brazil, as part of operations under GREEN operations. This is the fifth such loan made to BNDES since March 2011.*1
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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 with a focus on wind power generation. 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.
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JBIC launched on July 1, 2018, its Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG).*2 The Facility aims to provide a wide range of financing support for infrastructure development which is expected to help to preserve the global environment, including projects in the renewable energy field. Under QI-ESG, this credit line will provide necessary funding for the renewable energy field in Brazil.
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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
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See Announcement on June 28, 2018.