• EIB and FONPLATA strengthen collaboration to support climate change resilience, sustainable cities and extreme poverty reduction in Brazil and other Latin American countries.

European Investment Bank (EIB) Vice-President Ricardo Mourinho Félix and Luciana Botafogo, Executive President of the Fondo Financiero para el Desarrollo de la Cuenca del Plata (FONPLATA), have signed a memorandum of understanding in Brasilia to explore new intermediated financing and co-financing opportunities and other opportunities to cooperate on climate change resilience, sustainable cities and extreme poverty reduction.

The memorandum of understanding reinforces the good working relationship between the EIB and FONPLATA. In 2018, the EIB signed a loan with FONPLATA for a total amount of $60 million to support multisector projects targeting extreme poverty and climate change resilience in the River Plata Basin. The loan has so far financed three projects in Brazil for urban improvements in Amarante, Cascavel and Corumba.

Through this memorandum of understanding, the EIB is backing FONPLATA’s mission to provide financing through loans and grants to support economic and social development in its member countries, with the aim of reducing socioeconomic differences. This memorandum of understanding is part of the European Union’s Global Gateway initiative supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

EIB Vice-President Ricardo Mourinho Félix said: “The memorandum of understanding between the European Investment Bank and FONPLATA builds upon an excellent working relationship with the aim of unlocking new financing opportunities for Brazil and other Latin America countries. The EIB investment priorities in Brazil are to support the Sustainable Development Goals, with an emphasis on climate change mitigation and adaptation, social and economic infrastructure such as water and sanitation, education, transport, and local private sector development. Mobilising finance for these sectors is one of the EU bank’s priorities, in Brazil and across Latin America.”

Executive President of FONPLATA Luciana Botafogo said: “We, at FONPLATA, are pleased to reaffirm our partnership with the European Investment Bank (EIB). This new step demonstrates the trust placed in our Bank by the EIB and supports and strengthens our institutional actions. Over the past 5 years, we have worked together through cross-sector projects focused on reducing extreme poverty and promoting resilience to climate change in several countries in the region. This new memorandum of understanding will strengthen our ties to continue supporting economic and social development and reducing gaps within our member countries.”

EU Ambassador to Brazil Ignacio Ybáňez said: “The European Union is committed to supporting investment in Brazil. The memorandum of understanding signed between the European Investment Bank and FONPLATA will enhance cooperation between European and Brazilian partners, enable local projects to benefit from the EIB’s unique technical, energy, water and private sector expertise. Team Europe is helping create a better future for Brazilians.”

Background information

About the EIB:

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with projects. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world

https://twitter.com/EIBGlobal

https://www.linkedin.com/company/eib-global/

About EIB Global in Brazil:

The EIB is the largest multilateral public bank in the world and financed around €10.8 billion in investments outside of the European Union in 2022 via EIB Global, the arm of the EIB created in 2022 for activities outside the European Union. Brazil is the biggest beneficiary of EIB financing in Latin America. Since the EU bank started working there in 1997, it has provided over €5.4 billion to finance investments with favourable conditions — in terms of both maturity and interest rates — with the aim of improving the quality of life of Brazilians. Brazil represents around 40% of the EIB’s portfolio in Latin America.

About EIB Global in Latin America:

EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €13 billion to support more than 150 projects in 15 countries in the region.

About the Global Gateway initiative

EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion, around one-third of the overall envelope of the initiative, by the end of 2027, including in Brazil and Latin America.