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São Paulo, December
22, 2020—IFC, a member of the World Bank Group, approved the first
operation with a Brazilian financial institution to promote clean mobility.
Banco Alfa de Investimento S.A, the leading company of
Conglomerado Financeiro Alfa, will receive a $265 million financing package
to compose its loan portfolio for the acquisition of vehicles with a higher
level of sustainable consumption, such as flexible-fuel, electric, or hybrid
vehicles. The investment will help strengthen the climate finance
market, mitigating climate impact and supporting economic recovery in Brazil.
The first
tranche of funding includes a $100 million loan from IFC's own account and the
mobilization of other financial institutions in the amount of $65 million. The
banks involved in this phase of the financing are Itaú BBA, Banco Santander SA,
and Banco de Occidente. The second tranche, another $100 million, is expected
to be released in 2021.
The project
is a synergy between IFC's strategic goal to increase climate-related
investments and Alfa Conglomerate, which intends to evolve its sustainability
strategy and participate in a relevant way in the financing of vehicles with
low or no emissions of contaminants. IFC's support to Alfa will ensure the
extension of loan terms to retail clients through long-term funds, preserving jobs
and stimulating economic growth.
“The partnership with IFC materializes at a strategic moment for Alfa. We
are reviewing, developing, and strengthening our sustainability strategy and we
recognize that climate stability is one of the major challenges in the 21st
century. We are pleased to contribute to the reduction of emissions from
vehicles in Brazil by financing sustainable cars equipped with flexible-fuel,
hybrid, or electric engines,” says Fábio Raposo, Banco Alfa’s Executive
Director.
Brazil, the largest car market in Latin America, saw an initial downturn in sales triggered by the COVID-19 pandemic. As the economy gradually reopens, the country is expected to see an increase in car sales with more Brazilians likely
to opt for personal vehicles due to transmission risks in public transport. This will stimulate
the economy with the sector’s impact on the supply chain and other segments. The
push to purchase flexible-fuel, electric, or hybrid vehicles will also create a
greater demand for more sustainable products.
“One of IFC’s strategic priority in Brazil is to support
investments in climate-smart and modern technologies to mitigate climate impact. This funding
aims to contribute to market sustainability and translates
into support for the implementation of investments in renewable energy and
energy efficiency,” says Carlos Leiria Pinto, IFC’s Country Manager in Brazil.
In
September 2016, Brazil ratified its commitment to the Paris Agreement to reduce
greenhouse gas emissions and increase the participation of bioenergy in its
overall energy matrix (including biofuels and bioelectricity). The country is
already the second largest producer of biofuels worldwide, behind the United
States, and has the largest market for flexible-fuel vehicles. These cars have
proven to be an effective tool for climate change mitigation. The fleet of flex
vehicles reached 2.328 million units in 2019. In the case of electric vehicles,
the fleet is still small: the total of electric cars being used in the country
is around 20,000, according to data from the Brazilian Association of Electric
Vehicles (ABVE).
“This
investment is the beginning of a long-term partnership with Banco Alfa, which
will allow the Bank to continue supporting clean mobility, including
flexible-fuel, electric, or hybrid cars,” says Rogerio Santos, IFC’s head of
Financial Institutions for Brazil and the Southern Cone.
IFC will share its global expertise in climate finance with
Banco Alfa to build the bank’s capacity and contribute to increased
sustainability in the climate finance market. IFC will also support Banco
Alfa in the development of technical capacity for climate definitions,
eligibility criteria, and environmental impact reports to reduce greenhouse gas
emissions through the implementation of the Climate Assessment tool for
Financial Institutions (CAFI).
About Conglomerado Financeiro Alfa
Conglomerado Financeiro Alfa is composed of companies operating in different
financial and insurance segments and, with extensive experience and tradition
built on more than 95 years of history, seeks excellence in the development of
its business.
With operations
mainly in the credit to individuals and companies, Treasury, Third Party Funds Management,
Private Banking, Wealth Management and Mergers and Acquisitions, the Conglomerado
Financeiro Alfa is formed
by Banco Alfa, Banco Alfa de Investimento, Alfa Financeira, Alfa Leasing, Alfa
Corretora, Alfa Seguradora and Alfa Previdência. Offering security and
solidity, it operates with respect for ethical and sustainable values, which
have always accompanied its trajectory.
Conglomerado Alfa is also composed of non-financial companies from diversified sectors,
such as hospitality (Transamérica Hotel Chain), construction materials (C&C
Casa e Construção), agriculture and agribusiness (Agropalma), mineral waters
(Águas Prata), food (Ice cream La Basque), cultural (Teatro Alfa), communications
(Rede Transamérica de Rádio) and leather (Soubach).
Follow Us
www.bancoalfa.com.br
www.alfafinanceira.com.br
www.alfaseguradora.com.br
www.linkedin.com/company/conglomerado-alfa
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www.instagram.com/conglomeradoalfa
www.youtube.com/c/AlfaConglomerado
About IFC
IFC—a member of the
World Bank Group—is the largest global development institution focused on the
private sector in emerging markets. We work in more than 100 countries, using
our capital, expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2020, we invested $22 billion in private
companies and financial institutions in developing countries, leveraging the
power of the private sector to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
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