Eco Invest Brasil - Blended Finance Line

Eco Invest Brasil is a programme of Brazil’s Ministry of Finance under the Ecological Transformation Plan. It was created to unlock sustainable private investment and attract foreign capital for long-term investments, as exchange rate volatility and the lack of structured projects have been one of the main challenges to such investment. The Blended Finance line was created to provide sustainable projects with lower financing cost. The government provides part of the financing, reducing the costs for those who raise funds in the financial market, whether in Brazil or abroad. Its objective is to reduce the financing cost and attract investment in ecological transformation. The line uses catalytic capital at reduced cost to attract private capital and to make greenfield projects viable. Local financial institutions take up the line and combine it with external debt, raised through capital market issuance abroad or as contractual debt with foreign financial institutions. That external debt must be linked to foreign exchange hedging mechanisms. Funds are distributed through auction rounds that reward the institutions requiring the lowest share of catalytic capital. Eligible projects must be in in one of the four strategic areas aligned with Brazil’s Ecological Transformation Plan: - Energy Transition - Bioeconomy - Circular Economy - Green Infrastructure and Adaptation

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