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BDMG Infrastructure and Sustainable Development Financing Project

Brazil Brazil
Area Of Operation
Multiple Areas Multiple Areas

Quick Facts

Financing Approval Date
19 December 2023
Current Limit of NDB Financing
USD 200.0 million
Banco de Desenvolvimento de Minas Gerais S.A (“BDMG”)
Project Entity

More About This Project

Minas Gerais, the second most populous State in Brazil, seeks to mobilize additional funding to make investments into municipal, transport, social, energy infrastructure as well as agricultural sector projects across the region. BDMG is the third largest development bank in Brazil, finances projects in the State of Minas Gerais (“State”), and has extensive experience in lending to local companies and municipalities in the State. By partnering with BDMG, the NDB will increase the availability of long-term funding to local companies and smaller municipalities for investments into infrastructure and sustainable development within the State of Minas Gerais.

NDB is providing a loan to BDMG for on-lending to private and public sector sub-borrowers for the financing of infrastructure and sustainable development projects in the State of Minas Gerais focusing on (a) clean energy; (b) urban development for inclusive and sustainable cities; (c) sustainable agriculture and its associated infrastructure; and (d) social infrastructure (“Sub-Projects”)

The Project aims to contribute to socio-economic growth and development of Minas Gerais in alignment with the State’s plans. The Project has the overarching goals of (1) bringing sustainable infrastructure to small municipalities with economic development indicators below average for the country, (2) supporting reduction of greenhouse gas emissions and (3) contributing to the achievement of the goals set by the State of Minas Gerais in clean energy, urban development, and social infrastructure sectors.

The Project will be implemented by BDMG over a period of four years. BDMG will be responsible for identifying and selecting Sub-Projects for NDB financing based on pre-agreed eligibility criteria. BDMG will also be responsible for appraising, financing, and monitoring Sub-Projects.

The Project has been categorized as Category FI-B in line with NDB’s Environmental and Social Framework (“ESF”). Environmental and social (“E&S”) impacts and risks of the Project will vary depending on the Sub-Projects. The negative impacts will be mitigated by compliance with BDMG’s E&S Management System and country system requirements, as well as the implementation of an Environmental and Social Impact Management Plan agreed with NDB. In the event any of the Sub-Projects are classified as high risk under the BDMG E&S Management System, or as Category A according to NDB’s ESF, prior approval from NDB will be required.

NDB will provide a USD 200 million loan to BDMG guaranteed by the Federative Republic of Brazil.
Source of Fund Amount (USD Million)
NDB 200
NDB Borrower and Project Entity
Private Sector and Non-Sovereign Guaranteed Transactions Department

Nokuthula Mabuza

Gustavo Henrique de Oliveira Amaral