CAF grants USD220 million to BDMG to boost Powershoring and green projects

CAF led the structuring and financing of the first loan under the A/B structure for Banco de Desenvolvimento de Minas Gerais (BDMG) for a total amount of USD 220 million. This operation involved the participation of leading international financial institutions, such as Banco Continental, Banco do Brasil, Cargill, Eco.business Fund, Global Climate Partnership Fund, and responsAbility.

The loan marks a milestone in the relationship between CAF and BDMG, being the first A/B operation carried out by BDMG, and highlights CAF's key role as Lead Arranger in the mobilization of
mixed resources, attracting USD 120 million. With this financing, strategic projects in Brazil that support powershoring, sustainability, energy efficiency and sustainable and inclusive growth will be promoted.

CAF and BDMG have been collaborating for more than a decade, and this operation strengthens the ties between the two development banks, consolidating their joint commitment to sustainable development in the region. The new financial facility is part of CAF's comprehensive strategy to mobilize private capital for projects that contribute to the Sustainable Development Goals (SDGs) and promote a just energy transition.

Sergio Diaz-Granados, CAF's Executive President, noted, "BDMG is a key partner for CAF in Brazil, and with this new A/B loan we are fostering investments that will promote a more resilient and sustainable economy in the State of Minas Gerais. This financing will strengthen the State's capacities to face climate challenges, while supporting long-term economic growth."

According to BDMG President Gabriel Viégas Neto, the collaboration between the institutions follows the diversification strategy of the funds. "This fundraising reinforces BDMG's governance and strength in the international market. In practice, these funds will be made available to entrepreneurs in Minas Gerais and municipalities through credit lines. The gain is not only for the entrepreneurs, but for society as a whole. After all, the investments that the entrepreneurs will make will generate more employment, income and, consequently, improve the quality of life".

With this operation, CAF consolidates its position as a central player in the mobilization of resources for development in Latin America and the Caribbean, and reaffirms its leadership in the
structuring of innovative financial solutions that promote inclusive and sustainable economic growth.