Brazil's development bank BNDES launches $3.3 bln green economy fund initiative

BRASILIA, Sept 1 (Reuters) - Brazil's state development bank BNDES on Monday launched a public call for climate-focused investment funds, offering 5 billion reais in seed capital to spur a total of 18 billion reais ($3.32 billion) in investments.

Reuters first reported the plan in July.

WHY IT'S IMPORTANT

The program marks the largest public call for funds in BNDES's history, underscoring its role as anchor investor in Brazil's green economy transition as President Luiz Inacio Lula da Silva seeks to raise the country's profile on the global sustainability agenda.

BY THE NUMBERS

BNDES' 5 billion reais injection is expected to draw 13 billion reais in private capital. Up to five equity funds will receive as much as 4 billion reais, while two credit funds will share 1 billion. BNDES's stake will be capped at 25% in equity funds and 50% in credit funds.

CONTEXT

The funds will back projects ranging from industrial decarbonization and energy transition to green agriculture, ecosystem restoration and forest conservation. The move dovetails with Lula's environmental agenda and broader efforts to deepen Brazil's capital markets.

WHAT'S NEXT

Proposals will be accepted until October 20, with results due by January 2026. The call is open to foreign investors, with Reuters having previously reported that TPG TPG.O, Brookfield BN.TO and BlackRock BLK.N were among firms approached during market soundings.

($1 = 5.4212 reais)