BBVA provides financing to Banco do Brasil to support the country’s SMEs
The transaction, a $200 million trade loan facility, is 95% backed by the multilateral agency MIGA, part of the World Bank Group. This financing, which supports the transition towards more sustainable and resilient economic models in the country, reflects BBVA CIB’s ability to execute complex cross-border transactions and address client needs in core geographies such as Brazil. At the same time, the deal, executed in a key market such as the United Kingdom, reaffirms the strategic importance of the institutional segment, in close collaboration with the public sector.
BBVA CIB, through its London branch, is leading a trade loan facility $200 million granted to Banco do Brasil (BB), aimed at financing renewable energy projects in the agribusiness sector, as well as addressing the trade finance needs of small and medium-sized enterprises (SMEs) in the country. This bilateral credit facility, which will be directed toward green and socially responsible trade in the region, is 95% guaranteed by the Multilateral Investment Guarantee Agency (MIGA).
The financing provided by BBVA represents the majority of the series of loans extended by Banco do Brasil, demonstrating the bank’s leadership in cross-border transactions, particularly in priority markets such as Brazil and the United Kingdom, where the operation was executed. Additionally, the credit facility is part of MIGA’s new Trade Finance Guarantee Framework, which aims to support short-term trade finance flows.
The deal also underscores the relevance of the institutional segment—comprising banking institutions and the public sector—as well as the strategic importance of the United Kingdom and Brazil within BBVA’s growth strategy.
The deal underscores the relevance of the institutional segment as well as the strategic importance of the United Kingdom and Brazil within BBVA’s growth strategy
“This transaction once again showcases our strong capability to execute complex cross-border deals thanks to our global-local approach. It also reinforces our leadership position based on specialized advisory and a sustainability-driven perspective,” said Eva Rubio, Head of Global Transaction Banking at BBVA CIB. “We’re proud to contribute to the growth and development of Brazilian companies and to continue serving as a trusted partner for our clients.”
“Banco do Brasil’s international operations are increasingly aligned with major global agendas. This funding is the result of efforts by the Bank's International Area in coordination with MIGA, underscoring the Bank’s strong presence with multilateral agencies, global banks, and strategic partners to promote sustainable development and enhance the competitiveness of Brazilian companies abroad. We are expanding access to credit for micro, small, and medium-sized enterprises (MSMEs) and supporting projects focused on foreign trade and clean energy — key initiatives for inclusive growth and the country’s energy transition,” says Francisco Lassalvia, Vice President of Wholesale Banking at Banco do Brasil.