Germany’s Commerzbank, Inter-American Development Bank (IDB) and São Paulo-based Banco Pine have closed a US$115m syndicated A/B loan to expand access to financing for environmentally sustainable projects in Brazil.
The Green Line Finance Partnership entails a US$75m A loan from the IDB and US$40m B loan from Commerzbank.
The banks commented that with the demand for energy for both domestic and industrial purposes expected to expand 60% by 2021, Brazil’s energy matrix will likely shift toward a higher concentration of renewable energies, most notably energy from sugar cane derivatives and other renewables such as wind energy, small hydroelectric plants and biomass.
The partnership aims to increase access to adequate financing for transactions, particularly in renewable energy sectors that promote environmentally sustainable initiatives and reduce the impact on climate change in Brazil.
“Throughout Latin America and the Caribbean, financial institutions [FIs] fulfil an essential role in lifting green growth projects off the ground by facilitating their access to financing options,” said Marcelo Paz, project lead for the IDB.
“The IDB looks for like-minded partners in banking that seek to combine financial profitability with environmental returns. Banco Pine and Commerzbank were the right fit in Brazil.”
This is the second green loan deal that Commerzbank has completed with the IDB. In May 2013, for the first time the two banks partnered to finance a green facility in Brazil, demonstrating commitment to sustainable banking practices in the region.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
Due to the low interest rate environment and Basel III regulation many corporate treasurers, who may have in the past been very reliant on the banking sector to provide them with cash management solutions, have been forced to explore alternative options as banks have been refusing short dated cash deposits.