Citigroup Inc.
09/24/2024 | Press release | Distributed by Public on 09/24/2024 13:32
Banco do Brasil and Citi Close the First Sustainability-Linked Trade Loan Between the Two Institutions
New York - Banco do Brasil and Citi structured a Sustainability-Linked Trade Loan, leveraging Citi's trade finance platform to provide reduction in interest rates subject to the achievement of sustainability targets. Financing provided supports Banco do Brasil trade finance needs, as well as its sustainable goals.
In 2024, Banco do Brasil became one of the first financial institutions in Latin America to develop a framework based on the bank's sustainability goals. Among the targets considered by Banco do Brasil under this facility with Citi are the expansion of the sustainable agribusiness portfolio and the goal to expand the leadership of women and ethnic minorities in the financial institution.
According to Marcelo Marangon, Brazil's CCO and Banking Head, this is the first trade finance sustainability-linked loan associated with social and environmental objectives offered by Citi to a bank in Latin America. "For Citi Brazil, economic and social development are a priority, which is why we are proud to be able to provide financial solutions that promote the sustainable growth of businesses in our country and continue to be catalysts for sustainable development," said the executive.
This transaction supports Citi's Social Finance goal to enable access to basic services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets and supports Citi's goal to finance and facilitate $1 trillion in sustainable finance by 2030.
Francisco Lassalvia, Vice President of Wholesale Business at Banco do Brasil, says that over the years, the relationship with Citi has translated into several deals between our institutions, including bilateral credit operations and the provision of international services, always based on a long-term strategic partnership. Once again, we confirm our mutual commitment to promoting sustainable and responsible financial practices. He highlights that this operation is at the forefront of sustainable finance, integrating innovative goals that aim to strengthen our responsible investment portfolio, and distinguishes itself by linking its commercial conditions to the achievement of objectives such as increasing racial and gender diversity in the bank's senior leadership, reinforcing our commitment to inclusion and equity. Finally, he adds that by moving in this direction, Banco do Brasil reaffirm their purpose of leading responsibly, providing a positive and lasting impact not only for their customers and partners, but also for society as a whole.
About Banco do Brasil
With more than 120,000 employees worldwide and more than 5,000 service points in the country, Banco do Brasil cares about sustainability, with public commitments for a more sustainable future, with bold goals by 2030 and aligned with the Sustainable Development Goals and the Paris Agreement. We support our clients, partners, and society in the transition to a greener and more inclusive economy, with outstanding actions in sustainable credit, carbon market, ESG funding, and actions in favor of diversity and social inclusion. BB is recognized as one of the most sustainable banks in the world in several sustainability indexes, ratings and rankings, such as the Global 100, Selo Terra Carta, DJSI, IDiversa and others. The Bank has also been part of the UN Global Compact, since the arrival of the initiative in Brazil in 2003. Recently, BB became an ambassador for 3 Human Rights movements of the UN Brazil Global Compact: Elas Lideram; Living Wage and Race is a Priority. In June 2024, Banco do Brasil's Sustainable Credit Portfolio reached a balance of R$358.4 billion, an 11% growth in 12 months. Of this amount, R$ 150 billion will be allocated to social businesses. BB's renewable energy financing portfolio exceeded R$15.4 billion in June 2024 (compared to R$13.2 billion in March 2023), an increase of 16.6% in 12 months. BB's total portfolio of Bioeconomy in the Legal Amazon has R$13.6 billion invested and R$1.4 billion in portfolio balance, as of June 2024, considering only Amazonian products. At the end of the first semester, more than 670 thousand hectares were preserved in carbon projects, in the avoided deforestation methodology (REDD+), the result of 13 formalized projects.
Learn more at:
- www.bb.com.br/sustentabilidade
BB Press Officewww.bb.com.br/imprensa
[email protected]
(61) 98105-0356
About Citi
Citi is a preeminent banking partner for institutions with international needs, a global leader in wealth management, and a valuable personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a wide range of financial products and services.
More information is available at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
Citi Press Office
[email protected]