Banco do Brazil Trade Finance Guarantee Program (MIGA-00007)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
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
C
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
Apr 30, 2025
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 Bilbao Vizcaya Argentaria, S.A. (BBVA), HSBC Bank USA, N.A, Caixa Geral de Depositos
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 700.00 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 @ MIGA website

Updated in EWS Mar 17, 2025

Disclosed by Bank Mar 13, 2025

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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.

As stated on the project disclosure page, MIGA is proposing a Trade Finance Guarantee (TFG) program for Banco do Brasil, under which it would provide up to US$700 million in commitments over a three-year period to support trade-related transactions in Brazil. The TFGs would mitigate the risk of non-payment by Banco do Brasil and apply to multiple loan facilities with various lenders, optimizing the bank's funding strategy. Disbursements under these facilities would have a tenor of up to one year, with MIGA's maximum exposure at any given time capped at US$700 million.

The short-term financing supported by the Program would seek to support (i) trade financing for Micro, Small and Medium - sized Enterprises (MSMEs), providing financing such as pre-export loans; and (ii) financing of production, purchase of equipment and inputs related to renewable energy, such as biofuels, biomass energy production, solar power, or wind power, included but not limited to the agricultural sector.

The first of these MIGA-covered facilities under this Program would be for up to $400 million in loans supporting trade-related activities. Guarantee holders would include Banco Bilbao Vizcaya Argentaria, S.A, HSBC Bank USA, N.A, Caixa Geral de Depositos.

Trade financing is essential to the economic health of developing countries as it contributes to their export competitiveness, employment, and growth. The Program will allow Banco do Brasil ('BdB') to establish partnerships with various international banks, which will result in increased access to trade finance for MSMEs in Brazil. By supporting MSMEs, the Program will be helping an underserved segment of the population which is key to economic development in the country but faces financing constraints. In addition, the Program will support sustainable production, contributing to climate change mitigation.

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.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Banco Bilbao Vizcaya Argentaria, S.A. attracts deposits and offers retail, wholesale, and investment banking services. The Bank offers consumer and mortgage loans, private banking, asset management, insurance, mutual funds, and securities brokerage services. Banco Bilbao Vizcaya Argentaria operates in Europe, Latin America, United States, China, and Turkey.

HSBC Bank USA, National Association provides banking services. The Bank offers personal banking, wealth management, loans, savings accounts, leasing, retirement plans, investment management, and insurance services. HSBC Bank USA serves customers worldwide.
 
As stated on the company's website, Caixa Geral de Depósitos (CGD) is a major player in the Portuguese financial market. CGD, formed as a public limited liability company by the Portuguese state, in 1876, is one of Portugal’s leading institutions and fully owned by Republic of Portugal.

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.

No project contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

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