CAF, the development bank of Latin America and the Caribbean, has structured and led Banco de Desenvolvimento de Minas Gerais’ (BDMG) inaugural A/B Loan, securing $220 million in financing. This milestone transaction marks BDMG’s first venture into A/B Loan financing and features the participation of prominent international institutions, including Banco Continental, Banco do Brasil, Cargill, Eco.business Fund, Global Climate Partnership Fund, and responsAbility.
As Lead Arranger, CAF mobilised $120 million in blended resources to support strategic initiatives in Brazil aimed at powershoring, sustainability, energy efficiency, and inclusive economic growth.
The deal builds on a decade-long partnership between CAF and BDMG, further solidifying their commitment to sustainable development across the region. The financing aligns with CAF’s mission to channel private capital into projects that advance the UN Sustainable Development Goals (SDGs) and enable a fair energy transition.
“This transaction reflects CAF’s pivotal role in mobilising resources for transformative projects,” a CAF spokesperson said. “It underscores our shared dedication to fostering sustainable and inclusive growth in Latin America and the Caribbean.”
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.”
