BNDES, IDB set up US$2.4bn credit line

Friday, November 10, 2017

Brazilian state-run development bank BNDES and IDB joined forces to offer a credit line worth US$2.4bn.

The objective is to promote productivity through the medium and long-term financing of private investments in infrastructure projects, sustainable energy and "productive projects" of small and medium-sized enterprises, BNDES said in a statement.

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The first loan under the agreement is for BNDES's sustainable energy financing program and totals US$900mn, with US$ 750mn coming from IDB and the rest from the Brazilian bank.

"Most of the proceeds from this first loan agreement will be allocated to wind power generation projects with potential to finance investments in installed capacity in excess of 600MW," BNDES said.

IDB is the main international creditor of BNDES. Currently, BNDES has six active operations with IDB totaling, as of June, 10.6bn reais (US$3.25bn). The amount represents 55% of the total external funding obtained by BNDES from international organizations.