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Climate finance: supporting “green” SMEs in Brazil with GEF
Project
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Signature date
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Location
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Brazil
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Financing tool
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Financing amount (Euro)
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23600000
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Financing details
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USD 25m Equity Investment
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Customer
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GEF Latam Climate Solutions Fund III, LP
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Type of customer
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Investment fund
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Project number
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PBR1087
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Environmental and social ranking
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B
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has partnered once again with GEF by investing in its GEF LatAm III fund.
Client presentation
GEF is a global player in private equity dedicated to investment in the USA, South Asia and Latin America in medium-sized and midcap companies that generate climate co-benefits and/or are resource efficient. Proparco has been a partner of GEF since 2019 for the South Asia Growth Fund II dedicated to South Asia (mainly India).
Project description
Proparco has invested in the first closing of the GEF LatAm III fund which has a target size of USD 200m. It is GEF’s third vehicle dedicated to Latin America (mainly Brazil). Its objective will be to invest in tickets ranging between EUR 10m and EUR 20m in SMEs and midcaps that generate climate co-benefits or promote an efficient and rational use of natural resources.
Project impact
On the environmental front and based on the performance of the predecessor fund, the GEF LatAm III fund should avoid a significant volume of tCO2e emissions. On the economic and social front, the fund should support some 2,800 jobs in Brazil.
The project should thereby contribute to the achievement of SDGs 8 (“Decent work and economic growth”) and 13 (“Climate action”).