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During this period of health and economic crisis, when foreign investment tends to recede from emerging markets, the AFD Group, via this climate loan, affirms its support to sustainable development in Brazil, particularly to the country’s fight against climate change.

A USD 140 million climate syndicated loan to support a major player in the Brazilian financial system,

Proparco, together with its close partner, the German development finance institution DEG,  granted a loan of USD 140 million to "Banco BTG Pactual S.A." (BTG), a major player in the Brazilian financial system and across Latin America. BTG is the largest investment bank in Latin America, the 6th largest bank in Brazil by shareholders equity and a key player in providing loans and guarantees to a broad set of clients, from SMEs to large corporations. BTG is a pioneer in promoting climate finance in Brazil and plays a pivotal role in channeling resources towards projects with a positive impact in the mitigation of the effects of climate change. 

A landmark transaction: Proparco’s first climate loan to a Brazilian financial institution

Through this loan, Proparco is supporting the implementation of BTG’s climate finance strategy by funding the growth of the bank’s green loan portfolio. In terms of Environmental and Social (E&S) risk management, BTG is committed to adopting the EDFI Harmonized Environmental and Social Standards. Concerning climate co-benefits, BTG will respect the eligibility criteria of the IDFC Common Principles for Climate Mitigation Finance Tracking de l’IDFC and will use AFD's Carbon Footprint tool to measure the contribution of the projects financed to the reduction of greenhouse gas emissions.

This project is expected to create or maintain around 5430 direct or indirect jobs and through its effects it will contribute to SDOs n°8 (decent work and economic growth) and n°13 (measures related to the fight against climate change).

Further reading

Page projet (PROPARCO)

BTG Pactual