IFC, Santander Brasil boost green and SME financing
The International Finance Corporation is partnering with Santander Brasil to boost access to credit for small and medium-sized enterprises and expand green financing in Brazil.
IFC is providing $100 million (BRL560 million equivalent) in financing to Santander Brasil through its Working Capital Solutions Program, a component of IFC's $8 billion fast-track program to mitigate the impacts of the COVID-19 pandemic.
Half of the financing for Santander Brasil will be devoted to the commercialization of photovoltaic panels. Of the remaining amount, at least 20% will be directed to SMEs owned by women. IFC’s investment consists in a one-year senior loan, which can be renewed once, for additional 12 months.
Santander Brasil has already made possible the financing of 285 wind farms, which account for 30% of the installed capacity of wind energy in Brazil. The bank is also one of the leaders in providing financing to SMEs in Brazil and has recorded a 27.3% growth in its loan portfolio to the segment in the 12 months through June 2020.
