The Asian Infrastructure Investment Bank (AIIB) has approved USD100 million in on-lending funds to Brazilian development bank Banco de Desenvolvimento de Minas Gerais S.A. (BDMG) for the BDMG Renewables and Asia Connectivity Facility. The funds are expected to support companies or institutions operating in renewable and infrastructure-related fields in and around Minas Gerais, a large inland state in southeastern Brazil.
In addition to supporting renewable energy projects, the facility is part of Brazil’s government-backed Asia Connection program, which aims to attract Asian companies, research institutions and financiers to invest in projects in Minas Gerais to promote trade, technology and knowledge exchange across regions. AIIB will provide long-term capital to BDMG so the latter can finance projects in renewables and the infrastructure sector.
“AIIB promotes cooperation in addressing development challenges among our regional and nonregional members not just because it is our mandate—it’s key to our very purpose as a multilateral development bank,” said Jin Liqun, AIIB President and Chair of the Board of Directors. “We have a duty to help all our members in their social and economic development, including those outside the Asia region. We will continue working with our members in Asia and beyond in financing the Infrastructure for Tomorrow through projects that are financially, environmentally and socially sustainable.”
The project has received support from the Multilateral Cooperation Center for Development Finance (MCDF), a multilateral financial mechanism designed to promote high-quality infrastructure and connectivity investments in developing countries through partnerships. MCDF support will help BDMG improve its environmental and social framework, management system and practices.
“This project demonstrates the Bank’s relevance and value to its nonregional members during a time of urgency and need,” said AIIB Vice President, Investment Operations (Region 2) Konstantin Limitovskiy. “The project is fully aligned with AIIB’s priority to advance green infrastructure and will support the Government of Brazil’s intention to connect with Asia through improved trade and investment flows.”
The project will enable BDMG to further diversify its sources of long-term funding and expand its loan portfolio to renewable energy projects and projects connecting the local economy to economies across Asia through the enhancement of its environmental and social framework. It will also contribute to local environment improvements and investments dedicated to climate action that are linked to Asia and generate direct measurable benefits in enhancing regional trade and investment.
“BDMG is deeply honored to become AIIB’s first partner in Brazil. We believe that this landmark operation will be strategic for increasing the efficient mobilization and allocation of resources to finance sustainable development projects using BDMG’s capillarity as a last mile development bank,” said Sergio Gusmão Suchodolski, CEO of BDMG. “This partnership strengthens Brazil’s role, alongside other AIIB members, in shaping a new international financial architecture that will be key to face the current development challenges in emerging economies and to build a more sustainable and inclusive world in the 21st century.”
BDMG is the first digital development bank in Brazil, which enabled it to remain operational and accessible during the pandemic. BDMG has shown considerable innovation in using digital channels to provide highly transparent but quality service to clients while maintaining high credit standards.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 105 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
