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
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,
“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.
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