IDB Group and BNDES in Brazil launch Infrastructure Credit Fund
São Paulo – The Inter-American Development Bank (IDB) Group, through its private sector institution, IDB Invest, and the Brazilian Development Bank (BNDES) announce an alliance for the creation of an infrastructure credit fund for up to $1.5 billion. The fund initially called "B2 Infra" includes approximately 30% of its resources from BNDES, 10% from IDB Invest and the remainder will be raised together with the private sector, notably from institutional investors.
The focus of B2 Infra is to provide loans to projects in transport, energy, water and sanitation, and social infrastructure, such as health and education.
The two institutions will announce the structure of the fund within 60 days, in accordance with the rules of BNDES Fundos de Crédito. It is expected that the fund will be operational starting the second semester.
"This is an initiative that seeks to use public resources to leverage private resources for infrastructure, using the experience and extensive knowledge of the two institutions in financing infrastructure," explains Eliane Lustosa, director of the BNDES capital markets.
"IDB Invest will offer all its resources to analyze institutional integrity, social and environmental risks and financial structuring for the Fund to increase financing of sustainable infrastructure in Brazil,” said Hugo Flórez Timorán, representative of the IDB Group in Brazil.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.