📋 Tender Overview
STATUS
Proposed
MEMBER
Brazil
SECTOR
Energy
E&S CATEGORY
FI
PROJECT NUMBER
000904
FINANCING
PROPOSED FUNDING AMOUNT
USD100 million
FINANCING TYPE
Nonsovereign
TIMELINE
CONCEPT REVIEW
November 21, 2024
APPRAISAL REVIEW/FINAL REVIEW
April 24, 2025
OBJECTIVE
The Project’s objective is to contribute to increasing Brazil’s energy security and global climate change mitigation through increased small-scale solar photovoltaic capacity.
DESCRIPTION
The proposed Project is a non-sovereign-backed on-lending facility of up to USD 100 million to Banco Cooperativo Sicredi S.A. (Banco Sicredi), a cooperative bank in Brazil which is part of the larger Sistema de Crédito Cooperativo – Sicredi (Sicredi System or Sicredi), to support renewable energy initiatives, particularly solar photovoltaics (PV) projects with capacity of equal to or less than 1 MW, in Brazil.
The Banco Sicredi will on-lend the funds to credit unions under the Sicredi System to further on-lend for the installation of solar PV to its customers, who are members of its 103 credit unions located across all regions of the country.
AIIB’s facility will be entirely dedicated to climate change mitigation financing.
By financing only up to 50% of the underlying projects, AIIB's involvement is designed to catalyze private sector investment, thereby broadening the counterpart's funding sources and directing capital towards expanding renewable energy generation capacity.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), applies to this on-lending credit facility. The Project has been placed in Category FI as the financing structure involves the provision of funds through an FI, whereby Banco Sicredi, through the credit unions, will be responsible for the selection, appraisal, approval, and monitoring of sub-projects and the oversight of the sub-borrowers in line with AIIB’s ESP requirements. Banco Sicredi manages Environmental and Social (ES) risks for activities under the proposed facility through its Social, Environmental, and Climate Risk Management Policy (SECRMP) which aligns with AIIB’s ESP. The ES exclusion list of Banco Sicredi broadly aligns with AIIB’s ESEL. Coal mining and/or transportation, coal-fired power plants, and infrastructure exclusively supporting these activities will be excluded. Category A as well as Higher Risk activities are excluded from the proposed facility.
Environmental and Social Management System (ESMS). Banco Sicredi’s ESMS aligns with AIIB’s ESP and includes screening, categorization, due diligence, and monitoring of subprojects. Sicredi has established a division within its risk department which specifically addresses ES risks and conducts regular monitoring and evaluation of the projects to determine potential ES-related issues. As part of its ESMS, Si
