Proparco and Banco ABC join forces to support green projects in Brazil
published on 03 February 2021
By granting a $72.3 million credit line dedicated to climate projects, Proparco is supporting the development of Banco ABC Brasil, a bank committed to diversifying its portfolio towards green and energy efficiency projects, particularly in the field of agriculture and electricity production.
Banco ABC is one of the leading banks in corporate finance in Brazil. The bank is established in a large part of Brazil and is particularly active in the development of the agricultural sector, which structurally represents more than 20% of its portfolio.
Proparco has been supporting Banco ABC's development since it granted a $40 million loan in 2014 to support agricultural and agribusiness companies.
This new operation, a dedicated credit line of $72.3 million, will support the bank in developing its green loan portfolio, whether by improving the energy efficiency of some of its clients or by financing its clients' long-term investments in renewable energy projects.
"Proparco has made the support of private actors committed to the fight against climate change one of the structuring priorities of its action in Brazil. By supporting Banco ABC in its ambition to support climate co-benefit projects through this long-term credit line, Proparco demonstrates its commitment to the sustainable development of the Brazilian private sector and confirms its strategy of supporting Brazilian banks," said Philippe Serres, Proparco's Regional Director for South America, based in São Paulo.
This project is expected to support more than 4,000 jobs in the coming years. It will thus contribute to Sustainable Development Objectives 8 (Decent Jobs and Economic Growth) and 13 (Climate Action).
