CAF approves A/B loan for Development Bank of Minas Gerais (BDMG)BDMG

The Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved an A/B loan for up to US$250 million for Banco de Desarrollo de Minas Gerais (BDMG). CAF, as leader of the operation, will provide US$100 million, which will allow financing from other international entities for up to an additional US$150 million under the A/B structure. This is the first time that CAF has supported a development bank in Brazil with this type of financial mechanism.

Sergio Diaz-Granados Guida, CAF Executive President.

BDMG will use the proceeds of the financing to promote the powershoring strategy, which includes financing the green portfolio, renewable energy projects, and improving access to industrial zones in the state. The proceeds of the operation will also be used to finance micro, small and medium-sized enterprises and municipalities to finance projects in the sectors of energy efficiency, agriculture, sustainable infrastructure, water management and sanitation, among other areas.

"BDMG is a long-standing ally of CAF, with which we have operations that have already changed the reality of many entrepreneurs in the State. Now we will take a step forward and promote an orientation towards a just energy transition and green businesses, which will enable actions that mitigate and adapt the State's economy to climate change, promoting sustained and sustainable economic growth in the long term," said Sergio Diaz-Granados, CAF's executive president.

This is the third operation between CAF and BDMG. The previous ones were signed in 2013 and 2020, respectively. Both operations were for up to USD 100 million.