43661 - Banco BV SEF Credit Line

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Summary of Investment Information

Project Number

43661

Company Name

BANCO VOTORANTIM S.A.

Date SPI Disclosed

Jun 28, 2021

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Jul 30, 2021

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Jul 17, 2022

Department

Regional Industry - FIG LAC

Industry

Financial Markets

Previous Events

Approved : Aug 24, 2021
Signed : Jun 30, 2022
Invested : Jul 15, 2022

Sector

Commercial Banking - General

Project Description

The proposed investment consists of a 5-year loan of up to US$150 million to Banco Votorantim S.A. (banco BV or the Bank) to support climate-smart auto loans (flex-fuel, hybrid and electric vehicles) in Brazil, in line with one of IFC’s strategic pillars for the country: support investments in climate-smart and modern technologies to mitigate climate impact (the Project).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Climate (not covered in any category)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project-level effect is increased access to climate finance in Brazil by growing the climate-smart auto loan portfolio of banco BV. Beyond the project level outcomes, IFC anticipates that the Project will contribute towards sustainability by catalyzing additional banks to provide climate finance for climate smart vehicles through capacity-building, demonstration and replication channels.

The Project will provide long-term funding to banco BV and will be the first loan from a multilateral institution for the Bank. In addition, IFC will play an active role in sharing climate-related knowledge and tools with the Bank. Through the Project, IFC will provide capacity building to banco BV and the Bank will be better positioned to provide funding for and monitor the impact of climate-related investments.

E&S Category Rationale / Risks and Mitigation

The Project involves an A loan of up to US$150 million to support banco BV's portfolio for climate smart cars (flex-fuel, hybrid and electric vehicles) in Brazil and has been classified as category FI-3 according to the IFC Sustainability Framework. The Project will target individuals only and, therefore, the E&S risks associated with the Project are expected to be low. The Bank will be required to continue to meet the labor standard under PS2 and to inform IFC if there are any changes in the scope of its operations that affects the E&S risk of its portfolio.

Given the E&S risk nature of this project, development of a robust ESMS was not needed.

Contacts

For Inquiries About the Project, Contact

Banco Votorantim S.A.
Daniel Domiciano
Investors Relations Manager
55 11 5171-2288
daniel.domiciano@bv.com.br
Av. das Nações Unidas, 14171, Torre A, 18º andar, Conj. 82 - Vila Gertrudes, São Paulo
https://www.bancobv.com.br

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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