IDB lends $100M to Brazilian Bank for Climate Projects

IDB lends $100m to Itaú for climate projects

21 February 2012 - The Inter-American Development Bank (IDB) is lending $100 million to Brazilian bank Itaú BBA to help finance “environmentally friendly” projects in Latin America.  The loan will be used to finance renewable energy and energy efficiency projects, as well as projects that can generate carbon credits, the IDB said. This ‘A’ loan, from the IDB’s own capital, may be boosted by a syndicated ‘B’ loan of up to $100 million, for which the IDB will be the lead arranger.  “There is a shortage of financing for green projects in Latin America and this is part of our efforts to bridge this gap,” said Daniela Carrera-Marquis, chief of the IDB financial markets division at the structured and corporate finance department (SCF). The money will be loaned again, to projects in Brazil, Chile, Colombia, Paraguay, Peru and Uruguay.  The loan also aims to show that banking in the region “can go beyond traditional risk assessment models and include processes that allow investors to maximise their impact”, said Karina Azzinnari, project team leader at the IDB.  In recent years, the SCF has approved $325 million in loans to financial institutions in Latin America and the Caribbean to finance climate-friendly projects.