The project involves providing an up to US$ 50 million BRL equivalent A loan to SG Equipment Finance S.A. Arrendamento Mercantil (“SGEF Brazil” or the “Company”). The funds will be used to provide financing, mainly through leasing, to climate smart transactions (the “Project”). The Project counts on Credit Enhanced Loan Transaction (“CELT”) guarantee issued by Société Générale Group in France (“SGG”) which covers all commercial credit risk with the exclusion of certain country risk events. Supporting climate-change mitigation investments through financial intermediaries is a key pillar of IFC’s strategy.

- Positive Climate Change Mitigation. Through climate smart financing, SGEF Brazil's activities will have a direct impact in lowering greenhouse emissions and encouraging efficient management and re-use of scarce resources.
- Contribute to the confidence in the leasing sector in Brazil. By providing its first loan to a leasing company in Brazil and the first within SGEF entities, in the midst of an economic contraction, the Project will help address a potential confidence crises and increase market confidence in SGEF Brazil and in the leasing sector in Brazil.

The Project sponsor is SGEF Brazil, a leasing company operating within the Société Générale Equipment Finance (“SGEF”) group and mainly focused on equipment and vendor finance, both local and international.The Company is a wholly owned subsidiary of Banco Société Générale Brasil, which, in turn, is a 100% subsidiary of SGG. SGG has no parent company and its ownership structure as of December 2016 is as follows: free float (88.39%) of which BlackRock Institutional Trust Company (5.58%); Group employee share ownership plan (6.61%); Shareholders with more than 1.5% of the capital or voting rights (3.97%); Share buybacks (1.02%).

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

An extended list of private actors is available in a separate file. 

ACCOUNTABILITY MECHANISM OF IFC

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/

CONTACTS

SG Equipment Finance S.A. Arrendamento Mercantil
Ademir de Araujo

+55 11 2666 2281
ademir.araujo@sgef.com.br
Alameda Rio Negro, 500 - 20th floor - Tower B - Barueri - SP - Brazil