São Paulo, December 22, 2016
— IFC, a member of the World Bank Group, is providing a $175 million financing package to Banco ABC Brasil, to support projects that will help mitigate climate change effects. The financing will also support the increase of access to finance for small and medium enterprises (SMEs).
IFC’s financing package includes a four-year $50 million loan with IFC’s own account, and a two-year $125 million syndicated loan. The syndicated lenders are ABN Amro, HSBC, National Bank of Abu Dhabi, Santander, and Standard Chartered.
Investing in renewable energy ranks high among IFC’s priorities, since it promotes the diversification of Brazil’s energy matrix and decreases reliance on nonrenewable sources. Moreover, it helps generate jobs and support the country’s economic development. With IFC’s support, Banco ABC Brasil will invest in projects that promote the use of renewable energy and energy efficiency, in order to reduce greenhouse gas emissions. The financing may also be used in green building investments.
With this IFC financing, Banco ABC Brasil will also grant new loans to SMEs, thus contributing to job maintenance and creation in Brazil. SMEs are essential for the country’s socioeconomic growth, accounting for circa 52% of formal jobs and for approximately 27% of Brazil’s GDP (Sebrae data, 2014).
“This financing reinforces the importance of our partnership with IFC. With the support of the syndicated lenders, our partnership will enable Banco ABC Brasil to develop important segments of our business strategy,” says
Luiz Antonio de Assumpção Neto, Banco ABC Brasil executive in charge of relations with national and foreign financial institutions.
“The private sector plays a key role in promoting solutions for climate change mitigation as well as to support SMEs,” adds
Marcelo Castellanos, IFC Executive responsible for Financial Institutions in Latin America and the Caribbean.
“We are glad to renew our partnership with Banco ABC Brasil and help them support both the growth of SMEs and the development of the renewable energy and energy efficiency sectors.”
Since 2005, IFC has invested $1.2 billion in climate-related projects in Brazil. IFC’s global strategy for renewable energy focuses on investing in technologies and new business models to reduce the cost of renewables, making them more accessible and with a wider presence in emerging markets. Globally, since 2005, IFC has invested approximately $25 billion in long-term financing for renewable energy, energy efficiency sustainable agriculture, green building and adaptation of the private sector to climate change. IFC closed the 2016 fiscal year with climate-related global investments of $3.3 billion, including 82 projects in 33 countries.
About Banco ABC Brasil
Banco ABC Brasil, controlled by Bank ABC (Arab Banking Corporation), is a multiple bank specialized in lending and services to medium and large-sized businesses. Banco ABC Brasil is managed by a highly qualified team, who are also its shareholders and have a strong background in the financial market; they have great independence within the bank’s decision-making process. Banco ABC Brasil has been operating in the country since 1989, when it first developed a solid base of corporate clients, offering a broad portfolio of high added-value financial products and services. Banco ABC Brasil is recognized in the market for its expertise in credit assessment and granting. Banco ABC Brasil S.A. is listed in Corporate Governance Level 2 of the São Paulo Stock Exchange.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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