BNDES borrows €265 million from German bank for public transport

Germany's development bank KfW granted a €265 million loan to the Brazilian Development Bank (BNDES). The transaction is part of the Sustainable Urban Development Program, and should boost BNDES's potential to fund Brazilian companies' public transport projects in the country's metropolitan areas.

The initiatives, however, have to be innovative, sustainable, and environment-friendly, in compliance with the agreement signed by the two institutions and announced Tuesday (Aug. 18).

This BNDES has raised through multilateral entities and foreign government agencies nearly $765 million. The amount is earmarked for projects in renewable energy generation, urban mobility, and industrial plants.

According to the bank, the collaboration with KfW is celebrating its 50th anniversary. Over the course of these years, 14 loans deals were signed. Founded in 1948, KfW comprises a financial group with 80 percent of its share capital controlled by the Federal Republic of Germany and 20 percent by its states.

Translated by Fabrício Ferreira