Banco do Brasil drums up ESG funds - LatinFinance

Brazilian state-controlled bank Banco do Brasil (BB) announced securing $850 million in new ESG financing from international banks, aiming to promote sustainable practices among small and medium-sized farmers in Brazil. The majority of the funding, $800 million, was provided by JP Morgan, Standard Chartered, HSBC, and Crédit Agricole. The World Bank Group s Multilateral Investment Guarantee Agency (MIGA) guaranteed the transaction, which received a AAA rating, reducing the overall funding cost and allowing BB to offer competitive lending rates. The deal marks MIGA s first transaction in Brazil in a decade and the first involving conservation agriculture, which encourages minimal soil disruption and diversification of plant species. Farmers will be able to access more funds once they repay the initial loan. Additionally, BB obtained a $50 million sustainability-linked loan (SLL) from Citibank, representing its first ESG financing in Latin America. The interest on the loan will decrease if BB meets targets in sustainable and low-carbon agribusiness practices and expands leadership roles for women, black, and mixed-race people within the institution. BB s CEO, Tarciana Medeiros, mentioned that the bank plans to raise approximately $1 billion in ESG loans in New York during the United Nations Climate Week. In the past four years, BB has raised around $7 billion in green and sustainable finance.

Source: latinfinance.com
Published on 2024-09-24