Jun 23, 2011
Espirito Santo Investment Bank gets IDB loan to promote infrastructure development and green investments in Latin America
On-lending through BESI will finance infrastructure, renewable energy and energy efficiency projects
Banco Espirito Santo de Investimento SA (BESI), a Portuguese financial institution, will get a $50 million loan from the Inter-American Development bank (IDB) to lend to infrastructure, renewable energy and energy efficiency projects in Latin America and the Caribbean.
This project aligns with the IDB’s beyondBanking program to promote sustainable banking and with the planetBanking pillar which encourages banks to lower their indirect carbon footprint through investments in environmentally-friendly projects. On-lending through BESI will include production of fossil fuel alternatives and greenhouse gas (GHG) reduction opportunities – transactions that otherwise struggle to secure long-term financing.
“We’re very enthusiastic about this collaboration with the IDB. The union of the IDB’s local market expertise and reputation in Latin America with our origination and execution capabilities provides the perfect vehicle for BESI’s strategy to promote sustainable and “green” projects in the Americas,” commented Moses Dodo, Member of the Board of Espirito Santo Investment Bank and General Manager, BESI NY.
“By expanding the region’s access to international financial markets, this transaction promises to mobilize long-term financing and advance financial market know-how. This project is part of our strategy to target infrastructure and “green” sectors, which are pivotal to promoting competitiveness and economic development,” said Daniela Carrera-Marquis, Chief of the Financial Markets Division.
The loan approved by the IDB’s board on June 22 has a seven-year tenor with the option to be extended for another three years. The transaction will mobilize approximately $80 million from B-lenders, depending on market conditions. The project will be managed by BESI’s New York branch.
Espirito Santo Investment Bank (NY)
Banco Espirito Santo de Investimento S.A. is a Portuguese investment bank that offers corporate finance services including privatizations, mergers and acquisitions, private placement of debt and capital and strategic advice to medium and large sized corporate markets. BESI is expanding internationally and is already present in four continents, offering innovative solutions to clients through local presence in Iberia, UK, USA, Brazil, Mexico, Angola, Poland and Ireland. The firm operates as a 100% owned subsidiary of Banco Espírito Santo, SA.
Inter-American Development Bank (IDB)
The IDB is the leading source of long-term financing for economic and social development in Latin America and the Caribbean. Its Structured and Corporate Finance Department is responsible for non-sovereign guaranteed operations, which include loans and partial credit guarantees for private sector companies and state-owned enterprises.