Banco do Brasil and Citi Close the First Sustainability-Linked Trade Loan Between the Two Institutions

New York – Banco do Brasil and Citi structured a Sustainability-Linked Trade Loan, leveraging Citi’s trade finance platform to provide reduction in interest rates subject to the achievement of sustainability targets. Financing provided supports Banco do Brasil trade finance needs, as well as its sustainable goals.

In 2024, Banco do Brasil became one of the first financial institutions in Latin America to develop a framework based on the bank’s sustainability goals. Among the targets considered by Banco do Brasil under this facility with Citi are the expansion of the sustainable agribusiness portfolio and the goal to expand the leadership of women and ethnic minorities in the financial institution.

According to Marcelo Marangon, Brazil’s CCO and Banking Head, this is the first trade finance sustainability-linked loan associated with social and environmental objectives offered by Citi to a bank in Latin America. "For Citi Brazil, economic and social development are a priority, which is why we are proud to be able to provide financial solutions that promote the sustainable growth of businesses in our country and continue to be catalysts for sustainable development," said the executive.

This transaction supports Citi's Social Finance goal to enable access to basic services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets and supports Citi’s goal to finance and facilitate $1 trillion in sustainable finance by 2030.

Francisco Lassalvia, Vice President of Wholesale Business at Banco do Brasil, says that over the years, the relationship with Citi has translated into several deals between our institutions, including bilateral credit operations and the provision of international services, always based on a long-term strategic partnership. Once again, we confirm our mutual commitment to promoting sustainable and responsible financial practices. He highlights that this operation is at the forefront of sustainable finance, integrating innovative goals that aim to strengthen our responsible investment portfolio, and distinguishes itself by linking its commercial conditions to the achievement of objectives such as increasing racial and gender diversity in the bank's senior leadership, reinforcing our commitment to inclusion and equity. Finally, he adds that by moving in this direction, Banco do Brasil reaffirm their purpose of leading responsibly, providing a positive and lasting impact not only for their customers and partners, but also for society as a whole.