Asian Infrastructure Investment Bank approves $100m for renewable and infrastructure projects in and around Brazilian state of Minas Gerais.
For the first time, the Asian Infrastructure Investment Bank (AIIB) has approved a funding package for projects in Brazil. The new investment will see $100m provided through the Brazilian development bank Banco de Desenvolvimento de Minas Gerais (BDMG).
The funding will be used to support renewable energy projects through on-lending to companies active in that sector. It will also form part of Brazil’s government-backed Asia Connection programme, which aims to attract Asian companies, research institutions and financiers to invest in projects in the inland state of Minas Gerais.
AIIB president Jin Liqun, said “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. 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 will enable BDMG to further diversify its sources of long-term funding and extend more loans to renewable energy projects along with projects connecting the local economy to economies across Asia. It will also contribute to local environmental improvements and investments dedicated to climate action that are linked to Asia and generate direct measurable benefits in enhancing regional trade and investment.
Sergio Gusmão Suchodolski, CEO of BDMG, commented: “BDMG is deeply honoured 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.”