[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Banco ABC Brasil for Green Financing Partnership

[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Banco ABC Brasil for Green Financing Partnership On 15 January 2015, the Inter-American Development Bank (IDB) signed three loan contracts with Banco ABC Brasil S.A. for a Green Financing Partnership, through which IDB would provide 75 million USD from its ordinary capital (Loan 3282A/OC-BR) and the People's Bank of China would provide 25 million USD (Loan 3282/CH-PR) via the China Co-Financing Fund for Latin America and the Caribbean (CHC).

The IDB would also administer a B loan (Loan 3282B/OC-BR) for an amount up to 50 million USD with resources that would be contributed by commercial banks or other financial institutions, but it is unclear based on source reporting whether the IDB moved forward with this B loan financing.

The IDB approval date for this loan financing was 17 September 2014, and it refers to this project as "BR-L1413 : Banco ABC Brasil Green Financing Partnership". The IDB lists the project status as closed.

The purpose of the project is to provide stable, long-term financing to Banco ABC Brasil, in order for them to expand their private, environmentally-friendly investments.

In particular, loan proceeds will be used for on-lending to biofuel and biomass projects, including those using ethanol and sugar.

By extension, the loan will help support expansions to Brazil's energy supply and movement of its energy matrix to a more climate-friendly mix of energy sources. Loans to these sub-borrowers are expected to average 5 million USD.

The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.