Brazil: BTG Green On-Lending (AIIB-000706)

  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Banco BTG Pactual S.A., Caio Zanette
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 19, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.


To increase renewable energy capacity and contribute to climate change mitigation in Brazil.


The Project is an on-lending facility of up to USD200 million to Banco BTG Pactual S.A. (BTG) to support renewable energy development in Brazil.


Environmental and Social Policy, Standards and Categorization
. AIIB's Environmental and Social Policy (ESP) including Environmental and Social Exclusion List (ESEL) applies to this on-lending credit facility. The Project has been placed in Category FI because the financing structure involves the provision of funds through a Financial Institution (FI), whereby AIIB delegates to BTG the decision-making on the use of AIIB's funds towards sub-projects meeting the conditions agreed upon with BTG. This includes the selection, appraisal, approval, and monitoring of sub-projects and the oversight of the sub-borrowers and sub-projects in line with AIIB's ESP requirements.

Environment and Social Management System (ESMS).
BTG has a holistic ESG management system for different business segments including credit and securitization activity. BTG has become a signatory to the Equator Principles (EP) since 2020 and published its EP first-year implementation report in
July 2022
. BTG follows EP requirements and applies IFC Performance Standards and a full gender risk assessment for its loans that are above USD30 million with tenor of more than 3 years. For other lending activities, BTG applies reputational risk check, regulatory blacklist screening and conducts an ESG due diligence following internal sectoral environmental and social (E&S) policy, supplemented with climate risk identification and analysis, including physical risk and deforestation risk. BTG has agreed to develop Environmental and Social Management System (ESMS and the Project Environmental and Social Procedure (PESP) to meet AIIB ESP requirements for this Project before first disbursement. This includes introducing AIIB ESEL and enhancing E&S categorization and E&S due diligence based on AIIB ESP requirements. All Category A and higher risk Category B sub-projects will be excluded and clearly defined as per PESP during project categorization.

Environmental and Social Aspects
. The AIIB loan proceeds will be used for on-lending to the renewable energy sub-projects, including wind, solar, and potentially small hydro(<30MW) projects
in Brazil. BTG's proposed financing to these sub-projects is mostly in the form of a bridge loan with use of proceeds clearly defined (i.e., to support the construction of greenfield wind and solar sub-projects before technical completion). Upon the maturity of the bridge loan from BTG, the relevant project sponsor will seek to refinance the bridge loan with funding either from the local debt capital market or other lenders. AIIB funds can be recycled if needed to support other renewable energy sub-projects that meet the eligibility criteria agreed in advance with BTG.

Labor and Working Conditions
. BTG has been advised by AIIB of the need for provisions on labor and working conditions related to solar sub-projects. All suppliers and contractors will be advised of the importance of implementing appropriate management measures to identify and address issues related to the E&S provisions of the ESMS and PESP, including labor and working conditions and health and safety matters. According to the Project Team's on-site due diligence, BTG has provided good working conditions for its staff and tried to reduce the unnecessary overtime work. BTG provides competitive salary and benefit to its staff. BTG screens every client on potential slavery labor issue based on the regularly updated backlist provided by the government. The ESMS and PESP will include requirements to identify and mitigate potential health, safety, social and environmental hazards in all sub-project activities that pose a risk to employees and may also have the potential for disruption of site works. Generally, Brazilian local laws proposed high occupational safety and health (OSH) standards and workers' awareness are high, which has been confirmed during the site visit to a solar project supported by BTG.

Stakeholder Engagement, Consultation, and Information Disclosure
. BTG discloses
Social, Environmental and Climate Responsibility Policy
and will disclose an overview of ESMS in a timely manner as well as annual ESG report on its official website, and describes the E&S policy and procedure that are aligned with Equator Principles requirements on EP's website. BTG identifies key stakeholders and actively engages with them regarding ESG matters through on-line survey. For every sub-project, BTG reviews the sub-borrower's Stakeholder Engagement Plan (SEP) and the integration of local community demand in the project design.

Project's Grievance Redress Mechanism (GRM)
. BTG has a Compliance Hotline as project-level GRM that is managed by a selected compliance team to receive accusations, complaints or other reports concerning issues highlighted in BTG's Code of Conduct and Ethics. Every sub-project will be required to establish its GRM for community stakeholders and construction contracted workers. BTG's website will be required to provide information on GRMs and the AIIB's Project-Affected People's Mechanism (PPM) in a timely and an appropriate manner.

Monitoring and Supervision Arrangements.
BTG will rely on information provided directly by the sub-borrowers to conduct E&S Due Diligence and on-going monitoring of the sub-projects. BTG will be required to maintain a comprehensive database comprising all relevant E&S information and report to AIIB a summary of the E&S aspects and overview of the E&S performance of the Project's portfolio every year and on an agreed template. AIIB will conduct post-review of the selection and implementation of sub-projects as part of its regular supervision, comprising engagement with BTG, potential site visits and detailed review of the E&S documentation of selected sub-projects.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.





You can submit an information request for project information at:



The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at:


The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at:

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How it works