EIB and FONPLATA sign MoU to explore new financing opportunities in Brazil

European Investment Bank (EIB) Vice-President Ricardo Mourinho Félix and Luciana Botafogo, Executive President of the Fondo Financiero para el Desarrollo de la Cuenca del Plata (FONPLATA), have signed a memorandum of understanding in Brasilia to explore new intermediated financing and co-financing opportunities and other opportunities to cooperate on climate change resilience, sustainable cities and extreme poverty reduction.

The memorandum of understanding reinforces the good working relationship between the EIB and FONPLATA. In 2018, the EIB signed a loan with FONPLATA for a total amount of $60 million to support multisector projects targeting extreme poverty and climate change resilience in the River Plata Basin. The loan has so far financed three projects in Brazil for urban improvements in Amarante, Cascavel and Corumba.

Through this memorandum of understanding, the EIB is backing FONPLATA’s mission to provide financing through loans and grants to support economic and social development in its member countries, with the aim of reducing socioeconomic differences. This memorandum of understanding is part of the European Union’s Global Gateway initiative supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

EIB Vice-President Ricardo Mourinho Félix said: “The memorandum of understanding between the European Investment Bank and FONPLATA builds upon an excellent working relationship with the aim of unlocking new financing opportunities for Brazil and other Latin America countries. The EIB investment priorities in Brazil are to support the Sustainable Development Goals, with an emphasis on climate change mitigation and adaptation, social and economic infrastructure such as water and sanitation, education, transport, and local private sector development. Mobilising finance for these sectors is one of the EU bank’s priorities, in Brazil and across Latin America.”

Executive President of FONPLATA Luciana Botafogo said: “We, at FONPLATA, are pleased to reaffirm our partnership with the European Investment Bank (EIB). This new step demonstrates the trust placed in our Bank by the EIB and supports and strengthens our institutional actions. Over the past 5 years, we have worked together through cross-sector projects focused on reducing extreme poverty and promoting resilience to climate change in several countries in the region. This new memorandum of understanding will strengthen our ties to continue supporting economic and social development and reducing gaps within our member countries.”

EU Ambassador to Brazil Ignacio Ybáňez said: “The European Union is committed to supporting investment in Brazil. The memorandum of understanding signed between the European Investment Bank and FONPLATA will enhance cooperation between European and Brazilian partners, enable local projects to benefit from the EIB’s unique technical, energy, water and private sector expertise. Team Europe is helping create a better future for Brazilians.”