Latest news with #BNDES
CTV News
3 days ago
- Business
- CTV News
Brazil in talks with TPG, Brookfield over US$4 billion climate finance push: Reuters exclusive
Brazil is in talks with global investors including TPG and Brookfield to raise nearly US$4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. 'Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds,' Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-skeptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. By Simon Jessop, Marcela Ayres and Virginia Furness Editing by Kirsten Donovan
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Brazil in talks with TPG, Brookfield over $4 billion climate finance push
By Simon Jessop, Marcela Ayres and Virginia Furness LONDON/BRASILIA (Reuters) -Brazil is in talks with global investors including TPG and Brookfield to raise nearly $4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. "Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds," Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-sceptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. ($1 = 5.5167 reais) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Exclusive: Brazil in talks with TPG, Brookfield over $4 billion climate finance push
LONDON/BRASILIA, July 28 (Reuters) - Brazil is in talks with global investors including TPG (TPG.O), opens new tab and Brookfield ( opens new tab to raise nearly $4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. "Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds," Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock (BLK.N), opens new tab, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-sceptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. ($1 = 5.5167 reais)
West Australian
3 days ago
- Business
- West Australian
Viridis gets huge Brazilian finance nod for strategic minerals play
Viridis Mining and Minerals and its JV entity will ink a coveted joint support plan with two of Brazil's leading development agencies, opening the door to significant funding assistance from the Brazilian government. The Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Studies and Projects (FINEP) confirmed the company and its joint venture entity Viridion, are eligible to progress a joint support plan under the government's strategic minerals initiative. The plan will provide the company with potentially transformative non-dilutive grants, debt financing and possible equity participation to develop its Colossus rare earths project in the Brazilian state of Minas Gerais. At the same time, Viridis announced it has signed a binding memorandum of understanding with two leading Brazilian asset management firms, clearing another pathway for staged payments of up to US$30 million (A$46 million) in private share placement funding. The funding is expected to provide much-needed support, as Viridis looks to rapidly develop Colossus towards a final investment decision and starts executing the highly anticipated project. Under the BNDES/FINEP initiative, Brazil plans to inject a whopping BRL$5 billion (US$903 million) into the country's most noteworthy strategic mineral projects to strengthen its local supply chains. Viridis received an initial nod to progress to this next phase of the initiative in June. Being tapped to participate in the program could play a major role in fast-tracking Viridis' expanding Colossus rare earths project towards production and boosting its Viridion JV recycling and downstream refining business. Providing certain requirements are met, Viridis-Viridion could gain access to financial options, including BNDES funding programs, credit lines and equity investment, as well as to FINEP's non-reimbursable resources. Viridis plans to immediately negotiate a tailored funding package to supercharge Colossus' development and refining operations. Management says the company was selected largely due to the strong economics revealed in its preliminary feasibility study for Colossus, as well as its access to ASX-listed Ionic Rare Earths' patented and proven new-age refining and recycling technology. Viridion is a joint venture between Viridis and Ionic. The joint agency initiative was recently bolstered by a second round of funding, which put a further BRL$3 billion (US$542 million) on the table to help companies advanced in the strategic minerals refining process to develop innovation hubs and technology. The Viridion joint venture encompasses Ionic's patented solvent extraction technology developed at its Belfast plant in Ireland. The partners recently secured land in Minas Gerais' capital Poços de Caldas to build a centre for rare earths innovation, technology and recycling. The rare earth recycling facility will focus on recovering magnets from end-of-life equipment, such as wind turbines, electric motors and MRI machines. It will also process mixed rare earth carbonates from Colossus' demonstration plant. With its recycling and processing arms, Viridion could be an ideal candidate to source more funding from Brazil's second round funding. Viridion recently delivered high-purity magnet rare earths neodymium, praseodymium, dysprosium and terbium to Brazil's only magnet manufacturer CIT SENAI ITR. The new recycling facility will produce four magnet rare earth oxides at better than or equal to 99.5 per cent purity. In a further head-turning reveal, Viridis announced it has signed a binding memorandum of understanding with two leading Brazilian asset management firms, ORE Investments Ltda and Régia Capital Ltda, of up to US$30 million (A$46 million) in private share placement funding. Private equity group ORE Investments only invests in the mining sector, where it has deep experience in the technical, operational and financial sectors. Asset manager Régia Capital provides sustainable investments strongly aligned with environmental, social and governance criteria. The funding support for Colossus signifies a major vote of confidence in the growing project from renowned industry players, which may lead to improved access to project financing, permitting and support from potential key local stakeholders. Equity finance could provide flexible financing options for Viridis at important stages of its project development. The investment framework enables staged equity funding, designed to be delivered across four tranches over a maximum 36 months to support the company through key project milestones. Viridis will receive an initial US$5 million when it executes definitive agreements, priced at 91 cents per share. Follow-on tranche payments of US$5 million, US$10 million and a final US$10 million are scheduled at 12-month intervals to provide predictable funding support in line with Viridis' expected project development timelines. Viridis retains the right to pursue other financing opportunities, including under the joint BNDES and FINEP initiative, offering the company maximum flexibility. Viridis continues to work on environmental permitting and says advancing the regulatory framework is a priority. It completed an environment impact assessment report in January and a preliminary licence is expected to be approved shortly. Management says it has received strong interest in recent financing discussions with multiple government institutions, export credit agencies and development banks in several nations. The company is also pursuing strategic offtake talks, boosted by the recent strong pre-feasibility study economics. It is planning to run a metallurgical test program to enhance its recovery levels, and will feed this data into an upcoming definitive feasibility study. Viridis, with its massive Colossus project and magnet recycling joint venture with Ionic, seems to have caught the attention of the right players willing and able to support mining. That can only be a positive thing for this aspiring rare earths producer. Is your ASX-listed company doing something interesting? Contact:
Asharq Al-Awsat
11-07-2025
- Business
- Asharq Al-Awsat
Huawei Eyes Greater Role in Brazil Data Center Market
Chinese tech giant Huawei is interested in strengthening and improving its capacity as a supplier of data center solutions, it said in a statement to Reuters on Thursday, clarifying that it did not intend to invest directly in data centers. Reuters had reported on Wednesday that Huawei was interested in Brazil's data center market but was waiting on the government to roll out a tax-break plan. "We want the government to implement these incentives, which are good for the country, and the time has to be now," Atilio Rulli, Huawei vice president of public relations for Latin America and the Caribbean, told Reuters. The government's plan to dole out tax breaks for tech investments in Brazil is set to be sent to Congress soon, a finance ministry adviser said last month. Latin America's largest economy is looking to establish a foothold in the fast-growing data center industry, pulling from its ample renewable energy. The country is already courting major investments from firms such as ByteDance, TikTok's Chinese parent company, Reuters has reported. Huawei could provide connectivity, storage and energy for data centers, Rulli said, speaking on the sidelines of an event hosted by state development bank BNDES. "Huawei continues to follow the incentive policy being conducted by the Ministry of Development, Industry, Trade and Services, and when in force, will continue to contribute reliable, scalable and sustainable solutions to accelerate the digital transformation in Brazil and Latin America," Huawei said in the statement on Thursday.
