IFC, a member of the World Bank Group, is providing $60 million to Societe Generale Equipment Finance S.A. Arrendamento Mercantil (SGEF Brazil), the international equipment and vendor finance specialist of the Societe Generale group. The $60 million investment denominated in Brazilian local currency will help companies to replace their outdated machinery, equipment, or vehicles with new technologies that are more energy efficient and eco-friendly. This will help Brazilian businesses grow in a sustainable way and reduce their carbon footprint.
By making climate-smart equipment – such as electric forklifts, energy-efficient lighting systems or hybrid vehicles – more widely available, IFC’s investment is expected to reduce greenhouse gas emissions by 220,000 tons of CO2 equivalent per year, which is roughly comparable to taking 47,000 cars off the road.
“We are proud to be partnering with IFC to help Brazilian companies boost their businesses as well as support the energy transition. The fight against global warming is a major collective challenge to which Societe Generale is fully committed to fight against global warming,” said Jochen Jemlich, CEO of Societe Generale Equipment Finance.
Combating climate change is a priority for Brazil, which has committed to voluntarily reducing its emissions. To meet its targets, Brazil must improve financing for climate change adaptation and mitigation efforts. Leasing enables companies to acquire climate-smart equipment while gaining access to finance at longer tenors than otherwise possible.
“This is IFC’s first loan to a leasing company in Brazil and the first to an entity within the Societe Generale Equipment Finance family,” said Marcelo Castellanos, IFC Manager for the Financial Institutions Group in Latin America and the Caribbean. “We are glad to establish this new partnership with SGEF Brazil and help them support the development of the energy efficiency sector. We hope this investment will help increase market confidence in Brazil’s leasing sector.”
Since 2005, IFC has invested $1.7 billion in climate-related projects in Brazil. Globally, since 2005, IFC has invested approximately $30 billion in long-term financing for renewable energy, energy efficiency, sustainable agriculture, green building and adaptation of the private sector to climate change. IFC closed the 2017 fiscal year with climate-related global investments of $4.8 billion, including 95 projects in 43 countries.
Original source: IFC
Published on 27 December 2017
