Sao Paulo, Brazil, July 26, 2022—IFC, a member of the World Bank Group, is providing a financing package of $50 million to banco BV to support the bank's climate-smart vehicle loan portfolio in Brazil. The project aims to widen access to finance for the purchase of these vehicles and help strengthen the country's climate finance market, mitigating climate impact and supporting economic recovery in the country.
"As specialists and one of the market leaders in vehicle financing, this initiative makes a great contribution to the environment. We were pioneers among Brazilian banks to offset 100% of the CO2 emission of our financed fleet and we want to continue bringing sustainable innovation solutions to the sector", says Flavio Suchek, Executive Director of Retail at banco BV.
This project is part of IFC's broad systematic approach in Brazil to mobilize funding over the next few years that strategically support clean-transportation financing. The overall goal is to continue to expand the size of the clean fleet and support the replacement of old equipment with new environmentally friendly technologies.
By supporting access to finance for climate-smart vehicles, the financing package will contribute to Brazil's clean mobility goals and its commitment to the Paris Agreement to reduce greenhouse gas (GHG) emissions. IFC's support will promote clean transportation financing to also influence the Brazilian banking sector to grow their credit portfolio in the climate-smart vehicle segment, contributing to Brazil's long-term vision of a low-carbon future and the diversification of its transportation fleet.
"This operation is fully aligned with BV's ESG strategy, which has permeated the bank's business for years. We are increasingly reinforcing the investment agenda that considers aspects of socio-environmental sustainability and governance", says Rogerio Monori, director of Corporate Banking at banco BV.
"IFC is committed to help Brazil implement its environmental protection goals and support investments in energy efficiency to mitigate climate change. This project with banco BV will contribute to this effort by encouraging the decarbonization of the country's transport sector, while also better supporting Brazil's economic recovery and building a more resilient and sustainable economy," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
The project is aligned with World Bank Group's Climate Change Action Plan, which includes that climate finance would average 35 percent of its own account commitments from fiscal year 2021 to 2025. It also represents IFC's first direct investment in banco BV, and IFC will leverage its global expertise in climate finance to assist BV in building the capacity to monitor the impact of climate-related investments.
IFC has invested in Brazil's private sector since 1957 to address the country's most critical development challenges, including urbanization, social inclusion, competitiveness and productivity, and management of natural resources.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
Stay Connected
www.ifc.org/lac
www.twitter.com/IFC_LAC
www.linkedin.com/company/ifc-américa-latina-y-el-caribe
www.facebook.com/IFCwbg
www.instagram.com/ifc_org/
www.youtube.com/IFCvideocasts
www.twitter.com/IFC_org
www.ifc.org/SocialMediaIndex
About banco BV
"As specialists and one of the market leaders in vehicle financing, this initiative makes a great contribution to the environment. We were pioneers among Brazilian banks to offset 100% of the CO2 emission of our financed fleet and we want to continue bringing sustainable innovation solutions to the sector", says Flavio Suchek, Executive Director of Retail at banco BV.
This project is part of IFC's broad systematic approach in Brazil to mobilize funding over the next few years that strategically support clean-transportation financing. The overall goal is to continue to expand the size of the clean fleet and support the replacement of old equipment with new environmentally friendly technologies.
By supporting access to finance for climate-smart vehicles, the financing package will contribute to Brazil's clean mobility goals and its commitment to the Paris Agreement to reduce greenhouse gas (GHG) emissions. IFC's support will promote clean transportation financing to also influence the Brazilian banking sector to grow their credit portfolio in the climate-smart vehicle segment, contributing to Brazil's long-term vision of a low-carbon future and the diversification of its transportation fleet.
"This operation is fully aligned with BV's ESG strategy, which has permeated the bank's business for years. We are increasingly reinforcing the investment agenda that considers aspects of socio-environmental sustainability and governance", says Rogerio Monori, director of Corporate Banking at banco BV.
"IFC is committed to help Brazil implement its environmental protection goals and support investments in energy efficiency to mitigate climate change. This project with banco BV will contribute to this effort by encouraging the decarbonization of the country's transport sector, while also better supporting Brazil's economic recovery and building a more resilient and sustainable economy," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
The project is aligned with World Bank Group's Climate Change Action Plan, which includes that climate finance would average 35 percent of its own account commitments from fiscal year 2021 to 2025. It also represents IFC's first direct investment in banco BV, and IFC will leverage its global expertise in climate finance to assist BV in building the capacity to monitor the impact of climate-related investments.
IFC has invested in Brazil's private sector since 1957 to address the country's most critical development challenges, including urbanization, social inclusion, competitiveness and productivity, and management of natural resources.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
Stay Connected
www.ifc.org/lac
www.twitter.com/IFC_LAC
www.linkedin.com/company/ifc-américa-latina-y-el-caribe
www.facebook.com/IFCwbg
www.instagram.com/ifc_org/
www.youtube.com/IFCvideocasts
www.twitter.com/IFC_org
www.ifc.org/SocialMediaIndex
About banco BV
banco BV is one of the largest financial institutions in the country in terms of assets and operates in the Retail Banking, Corporate & Investment Banking, Asset Management and Private Banking segments. Its strategy combines the strength of traditional banks with the mindset of digital ones. The bank is a leader and specialist in used light vehicle financing and the first institution to neutralize the ecarbon footprint of the vehicles it finances. Known for partnerships with startups, the institution presents innovative solutions to the market. Banco BV defined its commitments to the environmental, social and governance pillars in the public document "Commitments for a lighter future 2030".
Contacts
Stay Informed
Sign up to have customizable news & updates sent to you.