The project sponsor is Unibanco. While its shares are listed on both the Sao Paulo Stock Exchange and the NYSE, Unibanco is controlled by the Moreira Salles family.

The project is to provide an A/B loan of up to $200.0 million to Unibanco.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

* These investment figures are indicative

Unibanco is headquartered in São Paulo and has a wide network of branches throughout Brazil.

The project is expected to have the following development impacts:

- It will increase the availability of credit to businesses who are committed to higher environmental standards and need long term funding to make sustainability-related investments;

- It will lower the risk-profile of the Bank thanks to its increased focus on lending to sustainable and less risky enterprises; and

- It will catalyze the adoption of higher environmental standards across segments of the Brazilian private sector.

IFC has the following roles and expected contributions in the proposed project:

Providing Long-term Local Currency Funding: IFC will provide long-tenor funding to the Bank, without which Unibanco would find it difficult to fund sustainability-related sub-projects that are usually characterized by relatively long gestation and payback periods. Without the proposed project, sub-borrowers would need to raise more expensive and shorter tenor funding elsewhere and would not receive the same support and incentives to perform sustainable investments;

Enhance Unibanco’s Capacity to Support Sustainability-related Investments: IFC will provide guidance and information support to Unibanco to enable UNibanco to identify sustainability opportunities, and expand its sustainability investment opportunities. IFC will also provide clarifications and guidance on the risk management aspects of Sustainability to enable Unibanco to upgrade and enhance the same;

Create a Demonstration Effect: Through this project, IFC is reinforcing its important role for establishing and demonstrating the viability of sustainability-related financing to Brazilian banks. This makes it more likely that other financial intermediaries will pursue similar types of sustainability-related lending activities going forward.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are:

- The IFC FI Exclusion List,
- The applicable National Social and Environmental Laws and regulations, and
- The IFC Performance Standards.

As an existing IFC client, Unibanco has been up-to-date in reporting its social and environmental performances. Considering that the project will apply IFC''s new Environmental and Social Policy framework, IFC will review the adequacy and effectiveness of its social and environmental management system (SEMS) to manage the social and environmental risks associated with its investments under the new requirements. If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS. Based on the review, the project will be required to:

- Upgrade, if necessary, its existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis; and
- Submit a periodic report to IFC as per a format to be provided by IFC.