BNP Paribas has enviable sustainable finance credentials globally, but Latin America has become a particular area of strength for the French bank. In 2023, it led on some truly landmark transactions for clients throughout the region and can claim to be leading the evolution of sustainable finance in Latin America.
The deployment of green technologies became an important strand of this in 2023, with BNPP – led by Michael Bellantoni, vice-president, sustainable finance capital markets, Americas –winning the mandate to be global coordinator, placement agent, bookrunner, sole mandated lead arranger and green loan coordinator for Solek PMGD’s green loan – an integral part of Chile’s wider decarbonization plan. BNPP financed $293 million for Solek, a Czech independent power producer that focuses on renewable energy.
Also in Chile, in December BNPP followed this with its role as lead arranger and hedge provider for a $345 million financing package to Global Infrastructure Partners (GIP) for its acquisition of a stake in solar, wind and batteries portfolio from AES Andes. The portfolio consisted of assets in operation and under construction and, once fully developed, will have a capacity of 1.3 gigawatts. The deal was an add-on to the Patagonia I financing that BNPP closed for GIP in 2021, which was also aimed at lowering carbon intensity in the region. Mytilineos’ 588-megawatt solar project was also led by BNPP (which was also green loan coordinator), demonstrating the bank’s leading renewables financing status in Chile.
Elsewhere in the region, the bank worked for Cemex on its first green subordinated perpetual bond issuance. The deal was for $1 billion and marks the first green hybrid by a cement company and the first green bond from Cemex. The proceeds will be allocated to projects that are eligible under the company’s green financing framework and will include those that prevent and control pollution, foster renewable energy and energy efficiency, develop eco-efficient technologies, promote clean transportation, and manage water.
BNP Paribas won the mandate to be global coordinator, placement agent, bookrunner, sole mandated lead arranger and green loan coordinator for Solek PMGD’s green loan
In Brazil, BNPP was sole export credit agency coordinator and green loan coordinator for a €300 million, 12-year credit facility for Raizen. The financing is the first ever green loan structured under the Sace Push Strategy.
Another first from BNPP in this area was Banco do Brasil’s inaugural sustainability diversified payment rights (DPR) transaction. The bank was the sustainability coordinator and sole arranger for the $900 million facility – the region’s first ever sustainable DPR. The proceeds of the transaction – which is secured by Banco do Brasil’s future dollar payment orders – will be used to finance or refinance sustainable projects.
The framework that governs eligible projects includes agriculture and is therefore an important step in aligning the bank’s very large agricultural loan portfolio to international environmental standards. BNPP followed up that deal with the first carbon trade ever made by a Brazilian bank for Banco do Brasil. The deal involved 5,000 carbon credits from Project Envira Amazônia, which protects more than 200,000 trees in the Amazon rainforest.
The deal opens a new market in an area in which the Brazilian government is keen to foster growth.
Meanwhile, in January 2023 BNPP led Cabei’s $1.25 billion social notes issuance, its first lead role in a public dollar benchmark for the issuer.
