São Paulo, December 27, 2017
— IFC, a member of the World Bank Group, is providing $60 million to Societe Generale Equipment Finance S.A. Arrendamento Mercantil (SGEF Brazil), the international equipment and vendor finance specialist of the Societe Generale group. The $60 million investment denominated in Brazilian local currency will help companies to replace their outdated
machinery, equipment, or vehicles
with new technologies that are more energy efficient and eco-friendly. This will help Brazilian businesses grow in a sustainable way and reduce their carbon footprint.
By making climate-smart equipment - such as electric forklifts, energy efficient lighting systems or hybrid vehicles - more widely available, IFC’s investment is expected to reduce greenhouse gas emissions by 220,000 tons of CO
2
equivalent per year, which is roughly comparable to taking 47,000 cars off the road
.
“We are proud to be partnering with IFC to help Brazilian companies boost their businesses as well as support the energy transition. The fight against global warming is a major collective challenge to which Societe Generale is fully committed to fight against global warming,” said Jochen Jemlich, CEO of Societe Generale Equipment Finance.
Combating climate change is a priority for Brazil, which has committed to voluntarily reducing its emissions. To meet its targets, Brazil must improve financing for climate change adaptation and mitigation efforts. Leasing enables companies to acquire climate-smart equipment while gaining access to finance at longer tenors than otherwise possible.
“This is IFC’s first loan to a leasing company in Brazil and the first to an entity within the Societe Generale Equipment Finance family,” said Marcelo Castellanos, IFC Manager for the Financial Institutions Group in Latin America and the Caribbean. “We are glad to establish this new partnership with SGEF Brazil and help them support the development of the energy efficiency sector. We hope this investment will help increase market confidence in Brazil’s leasing sector.”
Since 2005, IFC has invested $1.7 billion in climate-related projects in Brazil. Globally, since 2005, IFC has invested approximately $30 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 2017 fiscal year with climate-related global investments of $4.8 billion, including 95 projects in 43 countries.
About Societe Generale Equipment Finance
Societe Generale Equipment Finance (SGEF) is the international equipment and vendor finance specialist of Societe Generale group. Societe Generale Equipment Finance is a worldwide leading player employing 3,500 people across 42 countries in the world with more than EUR 26.3bn in outstanding. SGEF Brazil operates within the SGEF business unit and is mainly focused on equipment and vendor finance, both local and international. The Company is a wholly owned subsidiary of Banco Societe Generale Brasil, which, in turn, is a 100% subsidiary of the Societe Generale group in France.
About IFC
IFC, a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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