Banco do Brasil has signed an agreement of up to US $ 700 million with a guarantee of Multilateral Investment Guarantee Agency (Miga), from the World Bank, to support micro, small and medium-sized export companies and sustainable projects in Brazil, BB said in a statement on Monday.
The operation was structured through Miga’s Trade Finance Guarantee (TFG) program, which seeks to promote international trade and offers guarantees against risk of default, allowing global financial institutions to grant BB credit with lower risk and reduced cost.
“This capture reinforces the strategic presence of the bank with multilateral agencies, global banks and partners, with the objective of promoting sustainable development and expanding the competitiveness of Brazilian companies abroad,” said BB’s vice president of wholesale business, Francisco Lassalvia.
“We are expanding access to credit to micro, small and medium enterprises (MPMES) and enabling projects focused on foreign trade and clean energy – fundamental initiatives for inclusive growth and the energy transition of the country,” the executive added in the statement.
The statement states that Miga, the World Bank’s arm responsible for encouraging investments, has committed an exhibition of up to $ 700 million over three years, with deadlines of up to one year for each disbursement.
According to BB, the first disbursement will be immediate, $ 350 million, with the participation of institutions such as Banco Bilbao Vizcaya Argentaria (BBVA) and HSBC Bank.
“By expanding access through the program, we are supporting the transition of clean energy from Brazil and helping to unlock the potential of MPME to participate in these companies in global trade,” said Miga’s executive vice president, Hiroshi Matano.
The funds, according to BB, will be destined to financing foreign trade operations, sustainable production and renewable energy projects, including the acquisition of equipment and inputs such as biofuels, solar, wind and biomass systems, including, but not limited to the agricultural sector.
