Brazilian financial services company Itaú Unibanco has secured $200 million (£153m) in financing to support lending for greener vehicles.
The investment is the International Finance Corporation’s (IFC) and Itaú’s first green bond in the country, aiming to widen access to finance for the purchase of climate-smart vehicles.
It follows financing worth $400 million (£306m) provided by the IFC to Itaú in 2015 to support renewable energy, water treatment and energy efficiency projects in Brazil.
Daniel Goretti, Director of Treasury at Itaú Unibanco said: “The financing structure for this funding is innovative and it also reinforces the ESG agenda of supporting clients’ climate transition.”
The latest investment will promote clean transportation financing to influence the banking sector in Brazil to grow its credit portfolio in the climate-smart vehicle segment, contributing to the country’s low carbon transition and diversification of its transportation fleet.
Carlos Leiria Pinto, IFC’s Country Manager in Brazil added: “One of IFC’s strategic priority in Brazil is to support investments in climate-smart and modern technologies to mitigate climate impact.
“This project with Itaú will contribute to this effort by supporting local capital markets as a key source for catalysing finance to climate-smart vehicles, while also better supporting Brazil’s economic recovery and building a more resilient and sustainable economy.”