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Brazil: Proparco is supporting green projects via a loan to Banco ABC

Project

Financial services
Signature date
Location
Brazil
Financing tool
Loan
Financing amount (Euro)
60486907,05
Financing details
USD 72.3m loan
Customer
BANCO ABC BRASIL SA
Type of customer
Financial institution
Country of headquarters
Brazil
Project number
PBR1072
Environmental and social ranking
IF-A
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

In Brazil, Proparco is supporting the development of Banco ABC, a bank committed to the development of green and energy efficiency projects by financing SMEs operating in the agriculture, trade and industry sectors.

Client presentation

Banco ABC is a leading bank in corporate finance in Brazil. The bank has branches practically all over Brazil and actively contributes to the development of the agriculture sector, which structurally accounts for over 20% of its portfolio.

Project description

Proparco has been supporting the development of Banco ABC since it allocated a USD 40m loan in 2014 to support agricultural and agro-industrial companies. 

This new operation, a USD 72.3m credit line, will assist the bank with the development of its green loan portfolio, either by improving the energy efficiency of some of its clients or financing its clients’ long-term investments in renewable energy and bio-fuel production projects. 

Project impact

The expected impacts of this financing are as follows: 

  • Support for some 4,250 jobs over the next 5 years.
  • The mobilization of USD 114m of private finance (ratio of 1.9).
  • Support for the economic development of Brazil by financing SMEs, most of which operate in the agriculture/livestock raising, trade and industry sectors.

The project will thereby contribute to Sustainable Development Goals n° 8 (Decent work and economic growth) and 13 (Take urgent action to combat climate change).