The Brazilian Development Bank (BNDES) through its investment subsidiary BNDESPAR has selected Vinci Partners to manage its BRL-500 million (US$162.9 million) sustainable energy fund.
BNDESPAR and Vinci will now toguether start the process of structuring the fund, discussing regulations and offering quotas to potential investors.
With a term of 15 years, the new fund will have up to 50% participation from BNDESPAR. It is supported by the Climate Bonds Initiative (CBI). The bank hopes the fund can encourage the creation of a green bond market in the country.
The Fundo de Energia Sustentavel aims to support infrastructure projects, primarily in assets supporting the transition a low carbon economy. The fund is expected to be operational by the second half of 2017.
BNDES estimates a volume of project debenture issues of approximately BRL3.8 billion, with BRL1.7 billion in wind energy projects in the next 18 months.