CAF provides USD 220 Million to BDMG to drive Powershoring, Energy Efficiency, Green Financing and Sustainable and Inclusive Growth in Brazil

CAF, the development bank of Latin America and the Caribbean, has successfully led and structured Banco de Desenvolvimento de Minas Gerais’ (BDMG) first A/B Loan, totaling USD 220 million. This landmark facility involved the participation of major international institutions such as Banco Continental, Banco do Brasil, Cargill, Eco.business Fund, Global Climate Partnership Fund, and responsAbility.

This loan represents a significant milestone in the relationship between CAF and BDMG, as it is BDMG's first A/B Loan transaction. It highlights CAF’s key role as Lead Arranger in mobilizing blended resources, attracting USD 120 million. This financing will support strategic projects in Brazil that promote powershoring, sustainability, energy efficiency, as well as inclusive and sustainable growth.

CAF and BDMG have maintained a decade-long partnership, and this transaction strengthens their collaboration, reaffirming both institutions' commitment to sustainable development in the region. The new financial facility is part of CAF’s broader strategy to mobilize private capital towards projects contributing to the achievement of the Sustainable Development Goals (SDGs) and fostering a fair energy transition.

Sergio Díaz-Granados, Executive President of CAF, stated: “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 enhance the State's capacity to tackle climate challenges while supporting long-term economic growth.”

According to BDMG President Gabriel Viégas Neto, the collaboration between institutions aligns with their fund diversification strategy. “This financing strengthens BDMG’s governance and robustness in the international market. In practice, these funds will be made available to entrepreneurs in the States of Minas Gerais and to municipalities through credit lines. The benefits extend not only to entrepreneurs but to society. After all, the investments these businesses make generate more jobs, income, and, consequently, improve the quality of life.”

This facility not only bolsters BDMG’s capacity to deliver impactful development outcomes but also demonstrates CAF's ongoing commitment to mobilizing international resources, enhancing regional financial resilience, and supporting sustainable development initiatives in Latin America and the Caribbean.