Bansicredi CL Gr (IFC-44773)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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."
Voting Date
Mar 26, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Banco Cooperativo Sicredi S/A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 120.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 5, 2021

Disclosed by Bank Feb 24, 2021

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

 The proposed investment consists of a 7-year loan of up to US$120 million to Banco Cooperativo Sicredi S.A. (Bansicredi or the Bank) to support the Bank’s sustainable energy finance (SEF) program focused on renewable energy (specifically photovoltaic) projects in Brazil

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Project Outcome:
Stakeholders effect - Increased access to climate finance: IFC expects that this Project will increase access to finance for climate finance in Brazil specifically through the engagement with the agriculture and energy sectors. Brazil is ranked as the 13th largest emitter in 2018 with 457MtCO2 per year and the agriculture and energy sectors are together responsible for over 60 percent of the GHG emission in Brazil. The Country is projected to continue to increase its emission stemming from the rapidly increasing agriculture production. Through the Project with IFC, Bansicredi will strengthen the operational capacity to better identify opportunities to expand its climate asset portfolio, promoting more sustainable agricultural practices. Bansicredi has an extensive reach in the rural areas and agribusinesses in Brazil, through which the Project will promote the sustainable practices in the agriculture production and the energy use. To measure the progress against this outcome, IFC will track the number and volume of outstanding climate-smart loans.

Market Creation:
Sustainability: IFC expects that the Project will contribute to an increased sustainability of the Brazilian financial sector by introducing a green funding instrument to finance green assets. An increased sustainability will be fostered via demonstration and replication, and innovation. IFC aims at achieving this via its partnership with Bansicredi, who will introduce a GLP certified funding, a first time use in the Brazilian financial sector. GLP compliant loans give transparency and comfort to the investors, as the principles provide clarification and guidance on use of proceeds permitted, process for evaluation and selection of assets, management of projects, and reporting. This way, the GLP effectively helps investors avoid opportunities that are "green washed". At the same time, GLP compliant loans may be more economically attractive for smaller institutions, for whom bond issuances are not a viable option.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

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.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works