Brussels, 10/10/2011 (Agence Europe) - The European Investment Bank (EIB) granted a €500 million loan to The Brazilian Development Bank (BNDES) of Brazil on 5 October for projects in the renewable energy sector supporting climate change mitigation.
The EIB's Brazil Climate Change Mitigation framework loan will provide financing for small and medium-size investments in the renewable energy and energy efficiency sectors. It will be made up of a maximum of 25 investments schemes in the following sectors: energy and energy efficiency including small hydropower schemes (less than 30 MW), biogas- or biomass-fired heat and power plants, medium-scale hydroelectric power plants and wind farms, energy efficiency and climate change adaptation investments as well as manufacturing facilities for renewable energy equipment. The schemes will be located in Brazil. Under the eligibility criteria established in the signed loan agreement, BNDES will select from its portfolio the eligible projects and will submit them to EIB following the agreed allocation procedures.
This loan is provided under the €4.5billion Energy Sustainability and Security of Supply Facility (ESF). This will be the first operation structured under the ESF in Brazil and the first EIB operation with BNDES. (OL/transl.rt)