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The institution allocated $4.387 billion in new investments, including short-term finance and mobilization for Public-Private Partnerships (PPPs) São Paulo, Brazil, August 31, 2022 – IFC, a member of the World Bank Group, has earmarked a record $4.387 billion to support private sector development in Brazil in fiscal year 2022 (July 1, 2021 to June 30, 2022). The projects aim to address the country's main development challenges by increasing competitiveness, productivity and connectivity, as well as improving infrastructure and promoting sustainability. IFC's resources include short-term and long-term finance, equity investments, and mobilization with other financial institutions. The expanded investment portfolio in Brazil results from IFC's leading role in acting countercyclically and mitigating the effects of the Covid-19 pandemic. The projects will, for example, boost financing for small- and medium-sized enterprises (SMEs), support female entrepreneurship, stimulate the creation of new markets, and generate jobs. The total investment approved is 27.5 percent up on fiscal year 2021 ($3.441 billion), which was itself a record since operations in the country began in 1957. This strengthens Brazil's position as IFC largest portfolio in Latin America and the Caribbean, and the second in the world, after India. "The expansion of IFC's presence and portfolio demonstrates that Brazil is a strategic country for us, and that it is prepared to ensure a green, resilient, and inclusive economic recovery, with the private sector support," says Carlos Leiria Pinto, IFC's Country Manager in Brazil. "One of IFC's strategic priorities in Brazil is to help the country reconcile its economic growth with sustainability goals, and this was one of the prominent features of our projects in this period. We are helping strengthen climate resilience in key sectors of the Brazilian economy," he adds. Of the total resources allocated in 2022, $3.726 billion went to long-term finance, of which $2.463 billion were mobilized with other financial institutions, fulfilling IFC's role of attracting capital and new investors to the country. The institution also acted in short-term finance to maintain import and export business, with the approval of $660.8 million. Mobilization to support Public-Private Partnership (PPP) projects reached almost $2 billion, focusing on railroads, highways, and public lighting. The first blue loan in Latin America - IFC's investments prioritized key sectors of the Brazilian economy, such as water and sanitation, agribusiness, renewable energy, green finance, and financing for SMEs, including those managed or owned by women. IFC has also provided advisory services, offering a portfolio of projects to improve the country's business environment and investment policy. The projects were characterized by innovative approaches, such as the first pureplay blue loan in Latin America to Companhia de Saneamento Básico do Estado de São Paulo (SABESP), one of the largest water and sanitation companies in the world. The $150 million loan will be used as part of the Pinheiros River Clean-Up Program to finance investments to improve water quality and expand sewage collection and treatment in the most vulnerable neighborhoods of São Paulo. IFC is supporting SABESP through the Utilities for Climate (U4C) initiative, which combines advisory and investments to help water utilities tackle their most pressing needs and establish long-term relationships. Through the platform, the company requested IFC's support in conducting a diagnostic of the Non-Revenue Water Reduction Action Plan. In fiscal year 2022, 62 percent of IFC's own-account investments ($783 million) had a climate component, involving solutions to support climate change mitigation. Among them are the financing packages approved for Banco Alfa, Itaú, and BV to finance the acquisition of climate-smart vehicles. Usina Santa Adélia also received resources to expand its ethanol production and renew sugarcane plantations with innovative agricultural techniques. In addition, ABC Brasil will use IFC's loan to help increase access to climate finance in Brazil, especially for climate-smart agriculture-related projects. IFC also approved its first super green loan for a power distribution company, Neoenergia Coelba. The investment is linked to Environmental, Social, and Governance (ESG) targets which, if met, will reduce the cost of financing. Among the targets are the increase in the percentage of women electricians in the company and the reduction of the carbon emissions index in their units. The global development institution has also channeled resources to populations with less access to credit in a partnership with OMNI. The project supports self-employed truck drivers, micro-entrepreneurs in underserved areas of Brazil, low-income immigrants and refugees. To assist women entrepreneurs in the country, IFC mobilized four banks to work with Banco Daycoval, within the Banking on Women (BOW) program, which supports partners and financial institutions in offering sustainable solutions for women-owned businesses. Social loans in the healthcare sector – IFC has partnered with Santander Brasil to issue the first social loan in the healthcare sector in Latin America and the Caribbean. The resources allowed the bank to expand financing to micro-, small-, and medium-sized companies, and healthcare professionals for working capital and the purchase of medical equipment. The project is part of IFC's Global Health Platform (GHP), a $4 billion program to mobilize private investment to close the healthcare supply gaps caused by COVID-19. "In Brazil, IFC seeks to support affordable and quality healthcare services. We are optimistic that our healthcare projects, including PPPs, will have a catalytic effect, encouraging other social loans, expanding access to medical technology, and boosting the national healthcare ecosystem," adds Carlos Leiria Pinto. Stay Connectedwww.ifc.org/lacwww.twitter.com/IFC_LACwww.linkedin.com/company/ifc-américa-latina-y-el-caribewww.facebook.com/IFCwbgwww.instagram.com/ifc_org/www.youtube.com/IFCvideocastswww.twitter.com/IFC_orgwww.ifc.org/SocialMediaIndex
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