Fifth Credit Line for BNDES under GREEN Operations
Supporting Renewable Energy Projects in Brazil
- Region: Latin America and the Caribbean
- Untied Loans
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.
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
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.
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.
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.