Agreement Between BNDES and IDB foresees US $ 2.4 Billion for Infrastructure

brazil-1

Investment

Resources can be used to finance sustainable energy sectors and in micro and small enterprise projects

The National Bank for Economic and Social Development (BNDES) approved this week a US $ 750 million loan for the Sustainable Energy Finance Program.

The project focuses on increasing alternative renewable energy participation –  wind, solar and biomass –  the Brazilian energy matrix and energy efficiency. The funding will have a local counterpart of up to US $ 150 million.

This is the first operation of the Conditional Credit Line Agreement for Financing the Productive and Sustainable Investment, worth up to US $ 2.4 billion, which will be formalized between BNDES and the Inter-American Development Bank (IDB).

The BNDES will have a disbursement period of up to four years from the date of signature of the agreement, a 54-month grace period and a three-month Libor-based interest rate, plus the applicable margin for loans from the IDB’s ordinary capital.

Partnership

The IDB is historically the main international creditor of the BNDES, whose partnership began in the 1960s. Until 2010, 21 loan agreements were signed between institutions, with a historical value of more than US $ 8 billion.

The most recent contracts were aimed at supporting micro, small and medium-sized enterprises operations under the second Conditional Credit Facility Agreement.

Source: Portal Brazil, with information BNDES

Article originally published here
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