BRICS Bank Agrees to Brazil Renewables Loan

The Shanghai-based New Development Bank (NDB) and Brazilian state lender BNDES announced a US$600mn financing deal for renewable energy projects in Brazil.

The banks will each contribute US$300mn under the agreement, which represents NDB’s first loan in Brazil, BNDES said in a statement.

Under terms of the deal, BNDES will have 12 years to repay NDB, with an initial three-year interest-free period. Interest will be based on the Libor interbank rate.

“BNDES will use the NDB resources to diversify and expand its financing resources and to promote existing lines of credit for the alternative energy sector,” the Brazilian development bank said.

It added the funds would be used to develop projects totaling around 600MW of electricity generation capacity.
NDB, set up in 2014 by the Brics group of emerging economies, has approved loans of US$379mn in China, US$600mn in India, US$100mn in Russia and US$180mn in South Africa.

Source:

https://www.bnamericas.com/en/news/electricpower/brics-bank-agrees-to-brazil-renewables-loan