BNDES announces selected projects for new socio-environmental blended-finance model

The National Bank for Economic and Social Development (BNDES) has selected projects in its first public call for blended finance, covering the areas of forestry bioeconomy, circular economy and urban development.

Fifty proposals were submitted requesting approximately 175 million dollars in BNDES resources, an amount 10 times higher than the originally planned budget. The proposals were evaluated by a multidisciplinary team, with advisory support from IDB and UNDP teams. The eleven selected projects will receive about a total of 50 million dollars in BNDES resources (43% of the resources in 4 Urban Development projects; 31% in 4 Forestry Bioeconomy projects; and 26% in 3 Circular Economy projects).

The contracted structures must raise at least another 3 USD from third parties for every 1 USD contributed by BNDES, to support projects with a strong socio-environmental impact, in compliance with ESG parameters. Contributions from third parties will be channeled through different modalities such as financing, investments, guarantees, donations, participations and others.