BNDES reaches 1bn-euro deal with KfW IPEX-Bank to co-finance projects in Brazil

Brazilian development bank BNDES has signed an agreement with Germany's KfW IPEX-Bank for up to 1bn euros (US$1.07bn) to provide co-financing for projects in Brazil over the next five years.

“The strong presence of German and European companies in Brazil and the opportunities for productive investment and technological development, linked to global decarbonization efforts, make the partnership between KfW-IPEX Bank and BNDES even more relevant at this time," Luciana Costa, director of the infrastructure, energy transition and climate change area at BNDES, said in a release.

The agreement between the two banks focuses on financing with a positive environmental impact, and energy transition, climate adaptation and environmental protection projects. The sectors of interest will range from energy, water, sanitation, infrastructure, mobility to industry and commerce.

Due to its mandate, KfW IPEX-Bank will prioritize investment opportunities in which German and European companies are involved to support and promote their business activities in Brazil.

“BNDES and KfW IPEX-Bank are well aligned in their sectoral focus and have many common strategic objectives in their respective countries," said Belgin Rudack, CEO of KfW IPEX-Bank 

The administration of BNDES, under Aloizio Mercadante, is looking to reinforce its partnerships with international institutions to support its funding structure in order to expand its financing capacity in the coming years.