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will help companies to replace their outdated machinery,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 CO2 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.
For more information, visit: www.equipmentfinance.societegenerale.com
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