Banco do Brasil and BMO Financial Group to Introduce First-of-its-Kind Program to Provide Sustainability-Linked Trade Loans Supporting Brazilian Exporters
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Banco do Brasil aims to fund up to US$200 million for the export of low-carbon agricultural products under this program.
New York, September 18, 2023 – Banco do Brasil (BB) and BMO Financial Group (BMO) signed a Memorandum of Understanding today to provide Sustainability-Linked Trade Loans to apply to Advances on Export Exchange Contracts (“ACC”) and Advances on Export Shipment Documents (“ACE”) financing lines, with an emphasis on exporting products from sustainable and low-carbon agriculture.
The new transaction, unprecedented in the Brazilian market, should promote the export chain of sustainable and low-carbon products from Brazil, encouraging responsible practices in trade finance transactions and supporting the supply of certified and quality products for the main world markets. Among the innovations, differentiated conditions will be offered for ACC/ACE operations if sustainability targets aligned with BB’s commitment to sustainable agriculture, and agreed between the institutions, are achieved.
Banco do Brasil is focused on supporting customers that are developing world class sustainable agriculture practices, using various low-emission techniques such as direct planting, integration of agroforestry systems and use of renewable energy in the field. Banco do Brasil is a leader in this market with 54% of Brazilian market share.
Tarciana Medeiros, president of BB, highlighted that BB has concrete goals aligned with global sustainable development priorities. “Our public commitments deal with topics ranging from increasing sustainable credit and investments in renewable energy, to low-carbon agriculture and reforestation, as well as actions in favor of diversity and socio-environmental action”, she explains. “One of our commitments deals with sustainable agriculture, in which we want to reach a balance of R$200 billion in credit operations in sustainable agriculture, a portfolio that already exceeds R$143 billion,” she stated. She also highlighted that ESG issues are an inherent part of every relationship that Banco do Brasil maintains with its stakeholders. “We are the bank with one of the largest sustainable business portfolios in the country, with more than R$321.6 billion in balance, which corresponds to around a third of BB's total classified portfolio. And we want to reach R$500 billion in balance”, explained Tarciana, citing another of the 12 commitments launched in August this year.
“We are proud to be a partner of choice to Banco do Brasil. As sole lender and provider of sustainability structuring for this innovative new financing, we’re excited to help Banco Do Brasil make progress toward its sustainability objectives, including driving more responsible practices in export financing,” said Jonathan Hackett, Head, BMO Sustainable Finance. “Banco do Brasil’s commitment to helping its clients advance sustainable and low carbon agriculture practices aligns well with the way BMO works with clients and partners across multiple industries and our ambition to be our client’s lead partner in the transition to a net-zero world"
About Banco do Brasil
At 214 years old, Banco do Brasil has already surpassed the mark of R$321 billion in sustainable credit operations, a growth of 10% in 12 months, and intends to reach a balance of R$500 billion by 2030. This amount was contracted in lines of credit with a strong environmental and/or social focus or to finance activities and/or segments that bring positive socio-environmental impacts such as the sectors of renewable energy, energy efficiency, construction, sustainable transport and tourism, water, fishing, forestry, sustainable agriculture, waste management, education, health and local and regional development, to reinforce our transformative role in the country's development and in building an increasingly sustainable future for society. Find out more at www.bb.com.br/sistema and www.bb.com.br/ri.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.25 trillion as of July 31, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to over 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
For Media Inquiries:
Banco do Brasil:
imprensa@bb.com.br
www.bb.com.br/imprensa
BMO Financial Group:
Kelly Hechler, Media Relations
Kelly.hechler@bmo.com
