| Project Name | Banco do Brasil Sustainable Finance Project | ||
| Country | The Federative Republic of Brazil | ||
| Sector | Multiple Areas | ||
| Concept Approval Date | 25 April 2022 | ||
| Board Approval Date | 28 May 2022 | ||
| Total Project Cost | USD 280 million | ||
| Initial Limit of NDB Financing | USD 200 million | ||
| Current Limit of NDB Financing | USD 200 million | ||
| Borrower | Banco do Brasil S.A. | ||
| Project Context | The agribusiness sector represented 27% of Brazil’s GDP as of 2020 according to the Brazilian Confederation of Agriculture and Livestock, and employed one in every three (30.5 million out of 94.4 million) active workers in the country according to the Brazilian Institute of Geography and Statistics’ most recent National Household Sample Survey. The proposed Loan will contribute to Brazil’s development priorities by fostering sustainable infrastructure private sector investments and increased productivity growth in the agribusiness sector. | ||
| Project Objective | By supporting investments in sustainable infrastructure associated with agribusiness, the Project will enhance the sustainability, productivity, and production output of the agribusiness sector in Brazil, strengthening its contribution to the country’s economic growth in line with national priorities. The Project is primarily aligned with SDG 8 (Decent Work and Economic Growth). Secondarily, the Project will also contribute to SDG 9 (Industry, Innovation, and Infrastructure), and SDG 7 (Affordable and Clean Energy). Additionally, the Project has the potential to contribute to climate mitigation and/or adaptation. | ||
| Project Description | NDB and Banco do Brasil co-designed a Sustainable Finance Framework to provide financing for sub-projects, focusing on the following private sector infrastructure investments related to agribusiness: (i) Storage and warehouse facilities; (ii) Sustainable irrigation; (iii) Renewable energy; and (iv) Energy efficiency (the Project). | ||
| Expected Benefits | By financing sustainable infrastructure investments associated to agribusiness, the development impact of the Project will be to enhance the sustainability, productivity, and production output of the agribusiness sector in Brazil, strengthening its contribution to the country’s economic growth in line with national priorities. | ||
| Environmental and Social Aspect | Category FI-A, in line with the NDB ESF. Main adverse E&S impacts may include loss of natural habitats and impacts on biodiversity and ecosystem services; occupational health and safety risks associated with grain storage operations; impacts of water abstraction and potential contamination of surface and underground water resulting from irrigation systems. | ||
| Financing Aspect | |||
| Source of Fund | Amount (USD million) |
||
|
New Development Bank
|
200
|
||
|
Private Indirect Mobilization
|
80
|
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| Implementation | Banco do Brasil S.A. will be the Borrower And The Agribusiness, Finance and Sustainability Divisions of Banco do Brasil will be responsible for Sub-project origination, appraisal, structuring, reporting and monitoring to NDB. | ||
| Contacts | NDB | Borrower | |
| Private Sector and Non-Sovereign Guaranteed Transactions Department
Henrique Araujo Principal Investment Officer |
Banco do Brasil S.A.
Jose Ricardo Fagonde Forni Treasurer
Daniel Alves Maria Finance Officer |
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