BNDES Credit Program: Companies Will Have Reduced Financing Interest Rates If They Meet Emission Reduction Targets or Increase Their Social Initiatives

BNDES Credit Will Charge Interest Rates for Companies That Meet Environmental or Social Targets

The company that is attentive to its environmental, social and governance performance, known internationally as ESG, will have a direct impact on its finances. The National Bank for Economic and Social Development (BNDES), is offering better financing conditions for those that adopt and meet social or environmental targets.

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This is the BNDES Credit ESG program, which will allocate financing for any purpose to companies that manage to improve their sustainability index or engage in social actions. The financing will have lower interest rates.

How BNDES Credit Works

Initially, BNDES Credit ESG will be aimed at five categories: the wood chain focused on reforestation, manufacturers of equipment for the renewable energy and energy efficiency sector, mining, and steelmaking. The reason is that these sectors have many areas to improve in terms of sustainability. The fifth sector includes small internet service providers, having a greater social impact than environmental.

BNDES expects that with positive results from the project, in the future it will be possible to increase the number of sectors benefiting from the program: “This is a program that expresses BNDES’s desire to contribute to companies that want to accelerate their social and environmental commitments, in line with the increasingly concrete desire of society to have a more sustainable Brazil,” highlighted Petrônio Cançado, director of Credit for Infrastructure at the Bank.

The budget for the project is R$ 1 billion. Each category will have R$ 150 million available. Companies interested in the program must apply directly to BNDES. Payment can be made in up to 96 installments, with a grace period of up to 24 months.