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Company name

Banco do Brasil

Project number

11930-01

FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.

E&S category
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FI-3

Country

Brazil

Sector

Financial Institutions

Status

Completed

Disclosed date

11/16/2016

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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N/A

Approval date

04/11/2017

Signed date

06/02/2017

Sponsoring entity

N/A

Investment Operations Department Contact

N/A

Investment type

Syndicated amount

USD $ 400,000,000

Financing amount

USD $ 100,000,000

Currency

USD

Project scope and objective

The proposed financing consists of an A/B senior unsecured loan of approximately US$500 million to Banco do Brasil S.A (“BdB” or the “Bank”) as follows: (i) IIC A loan of up to US$30 million to be funded by the IIC; (ii) IDB A loan of up to US$70 million to be funded by the IDB; and (iii) B loan expected to be of approximately US$400 million to be funded through the sale of participations to commercial lenders (the “Financing”). The term of the IIC A loan and the IDB A Loan is expected to be up to 5 years with up to one year of grace.

This Project constitutes the first commercial financing in which BdB has worked with a multilateral institution and the first time that it will enter into an A/B loan agreement, though BdB has participated in several IIC-led A/B loans as a B lender and, in this context, has always had an excellent relationship with the IDB Group.

The Financing is intended to support BdB in increasing access to financing for micro and small enterprises (MSEs) involved along the agribusiness value chain in Brazil. Specifically, the A loan will be dedicated to serving those MSEs operating in underserved areas of the country, including the Northeast, while the B loan will work with agribusiness MSEs throughout the country. In addition, the IIC will seek to support BdB with advisory services focused on its microentrepreneur clients on issues of financial education.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

SCOPE OF THE ENVIRONMENT REVIEW

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Contact information

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Alternatively, you may also use the following contact information :

Client Contact

EMAIL

N/A

PHONE NUMBER

N/A

POST OFFICE ADDRESS

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

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