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Sustainability-Linked Pre-Export Finance Facility Boosts Brazilian Aluminum Producer's Green Efforts
A landmark sustainability-linked pre-export finance facility has been secured by Brazil's largest aluminum producer, Companhia Brasileira de Alumínio (CBA), thanks to the collaboration of BNP Paribas, Citibank, N.A., and SACE, an Italian insurance and finance group.
The dual-currency pre-export finance facility, worth $50 million USD and €44 million EUR, will enable CBA to pre-finance current and future exports of aluminum and related products. The financing comes with a carbon footprint key performance indicator (KPI) and sustainability performance targets, making it a significant step towards managing greenhouse gas emissions.
SACE, controlled by Italy's Ministry of Economy and Finance, has guaranteed the loan under its Push Strategy program. This program supports Italian exports by guaranteeing loans to international buyers committed to increasing purchases of Italian goods and services.
José Cobeña, lead counsel from Norton Rose Fulbright, oversaw the multi-jurisdictional legal team that coordinated across Brazilian, Italian, UK, and US legal frameworks to ensure sustainability components were embedded in the financing structure. Arturo Sferruzza, Giulio Mariano, Juliana Souza, and Dan Spencer were also part of the team.
The transaction not only helps CBA meet environmental targets but also strengthens industrial supply chain ties with Italian suppliers of equipment and engineering services. BNP Paribas and Citibank, N.A. represented in the pre-export finance facility closing, marking another successful collaboration in sustainable finance.
The sustainability-linked pre-export finance facility is a testament to the growing use of sustainability-linked finance, which ties capital access to measurable ESG outcomes, particularly carbon emission reductions. It also underscores the potential for such financing to support international trade and industrial collaboration.
[1] BNP Paribas and Citibank, N.A. provide sustainability-linked pre-export finance to Brazil's largest aluminum producer (Source: Norton Rose Fulbright) [2] SACE guarantees sustainability-linked pre-export finance facility for Companhia Brasileira de Alumínio (Source: SACE)
- The sustainability-linked pre-export finance facility, facilitated by BNP Paribas and Citibank, aims to support the energy-intensive aluminum industry by providing financing to Brazil's largest aluminum producer.
- The Italian insurance and finance group, SACE, has guaranteed a finance facility that integrates sustainability metrics, specifically focusing on reducing carbon emissions in the finance and energy sectors.
