IDB Group and BNDES in Brazil launch Infrastructure Credit Fund

The Inter-American Development Bank (IDB) Group, through its private sector institution, IDB Invest, and the Brazilian Development Bank (BNDES) announce an alliance for the creation of an infrastructure credit fund for up to $1.5 billion. The fund initially called “B2 Infra” includes approximately 30% of its resources from BNDES, 10% from IDB Invest and the remainder will be raised together with the private sector, notably from institutional investors.

The focus of B2 Infra is to provide loans to projects in transport, energy, water and sanitation, and social infrastructure, such as health and education.

The two institutions will announce the structure of the fund within 60 days, in accordance with the rules of BNDES Fundos de Crédito. It is expected that the fund will be operational starting the second semester.

“This is an initiative that seeks to use public resources to leverage private resources for infrastructure, using the experience and extensive knowledge of the two institutions in financing infrastructure,” explains Eliane Lustosa, director of the BNDES capital markets.

“IDB Invest will offer all its resources to analyze institutional integrity, social and environmental risks and financial structuring for the Fund to increase financing of sustainable infrastructure in Brazil,” said Hugo Flórez Timorán, representative of the IDB Group in Brazil.

Original source: IADB
Published on 05 June 2018