Aug 18, 2015

• Agreement for approximately R$ 1 billion aims to support innovative and climate-friendly projects in Brazil’s metropolitan areas

The Brazilian Development Bank (BNDES) entered into a financing agreement with KfW, its German counterpart, in the amount of 265 million euros (approximately R$ 1 billion). The loan was signed within the scope of the Sustainable Urban Development Program, whose purpose is to support innovative and climate-friendly projects. Resources will be earmarked for efficiency and sustainable public transport systems in Brazil’s metropolitan areas to be run by local companies.

The cooperation between the BNDES and KfW started in the 1960s and, in 2015, both institutions are celebrating 50 years of successful joint ventures. Since that time, some 14 loan agreements have been signed. This particular cooperation for urban mobility, signed on August 17, opens a new window of opportunities with the German bank.

With this new loan agreement, the BNDES will continue to focus on its strategy aimed at expanding investments made in partnerships with multilateral bodies and governmental agencies. In 2015, the BNDES has raised US$ 765 million with international institutions to support projects such as renewable energy generation, urban mobility and industrial plants.

The KfW is part of a financial group, of which 80% is controlled by the Federal Republic of Germany and the remaining 20% by its federal states. It was created in 1948 with the purpose of financing projects to rebuild and restore the German economy following the wars. Since then, the KfW widened its range of activities to also finance investments outside Germany. Support for developing countries is offered within the scope of the Official Financial Cooperation promoted by the German Ministry of Economic and Development Cooperation (BMZ).