IFC Continues to Expand Impact in Brazil with Record Financing in Fiscal Year 2024

São Paulo, Brazil, October 30, 2024 — IFC has achieved another record year of investments in Brazil in 2024, with $7.3 billion in total investments in the fiscal year ended on June 30. This represents IFC’s largest investment program worldwide. This historic investment is helping alleviate poverty and drive prosperity amid the pressing challenges of climate change, gender inequality, and social financing gaps. Climate projects, small and medium-sized enterprises and the water and sanitation sector were particularly benefited.

IFC's commitments in the country in the fiscal year 2024 represent a 12 percent increase from the previous period. The funding includes $1.6 billion in long-term financing from IFC's own account, $5.1 billion in mobilization, and $682 million in short-term trade and supply-chain finance to ensure seamless trade flows. With a committed portfolio of $7.7 billion, Brazil represents IFC’s largest portfolio in  Latin America and the Caribbean and the second largest worldwide.

"Brazil is, and will remain, a pivotal country in IFC's strategic efforts to foster economic development on a livable planet. We have more than doubled our investments in the country over the last three years and aim to continue this increasing trend in the coming years,” said Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean. “Climate matters are at the heart of global discussions on inclusive growth, and Brazil is a central element in this context. IFC will intensify its efforts to mobilize the private sector in Brazil, expand sustainable financing, develop capital markets, and channel investments into critical sectors of the Brazilian economy," Alfonso added.

Climate and Infrastructure

In the fiscal year 2024, IFC supported crucial sectors and businesses for Brazil’s sustained growth, including water, sanitation, and waste management. This was done through investments as well as advisory services on public-private partnerships (PPPs).  On the investment front, IFC provided the first sustainability-linked loan for the waste management sector in emerging markets to Orizon, boosting recycling capacity in Brazil. Our investment in BTG Pactual Timberland Investment Group is supporting the company’s reforestation strategy in Latin America, including in the Cerrado biome in Brazil. Additionally, our loan to ComBio, a leading provider of renewable thermal energy solutions, is helping their expansion through biomass steam generation projects.

These projects, among others, contributed to IFC allocating 50 percent of its own-account investments (around $775 million) to projects that incorporate solutions for climate change mitigation or adaptation in Brazil.

IFC leveraged its global expertise to enhance sustainability in Brazil and Latin America by launching the Amazon Finance Network with IDB Invest, promoting sustainable economic growth across the Amazon region. Currently, 47 financial institutions are part of this alliance. IFC also launched its Biodiversity Finance Reference Guide in Portuguese to help Brazil tap into its potential for biodiversity finance and nature-based solutions.

Inclusion and Gender

Projects supporting Brazilian small and medium enterprises (SMEs) received 41 percent of long-term financing from IFC’s own-account, with a special focus on women entrepreneurs and companies from the North and Northeast. Projects ranged from an investment in Banco Santander’s first social bond to improve access to finance for micro, small, and medium enterprises in underserved regions of Brazil to an investment in Bradesco to provide capital to companies operating in creative industries.

Around $1.2 billion of IFC’s long-term financing, including own-account and mobilization, was allocated to projects with a gender component. In addition, the institution advised Omni and Finsol on developing  a value proposition aimed at women microentrepreneurs and drivers in Brazil. IFC's advisory included market research, interviews with microentrepreneurs and drivers, portfolio analysis, workshops, and internal training focused on the target audience’s needs and preferences.

New Multiyear Plan for Brazil

In April 2024, the World Bank Group (WBG) Board of Directors endorsed the Country Partnership Framework between WBG and Brazil. This strategy will guide the Group's joint work for the period of 2024-2028 to strengthen Brazil’s development. IFC will reinforce its focus on the mobilization of private capital, expansion of sustainable finance and further development of capital markets, with emphasis on sectors that are essential for inclusive growth and for Brazil’s climate adaptation and mitigation strategy. IFC is expected to exceed $5 billion of new commitments per year in Brazil, including own resources and mobilization.