IDB Invest Client Impact DEBrief – Development Bank of Minas Gerais (BDMG)

This IDB Invest’s Client Impact DEBrief highlights the SDG-aligned impact achieved by the 50-million dollars Sustainable Bond issuance in 2020 from the Development Bank of Minas Gerais (BDMG) aimed at to expand its sustainable lending portfolio.

BDMG, a state-owned financial institution based in the State of Minas Gerais (Brazil), holds a portfolio from urban industries to rural enterprises, operating in sectors such as infrastructure, renewable energy, sanitation, agribusiness, and technology.

The financing from the bond issuance was directed toward small and medium-sized enterprises (MSMEs) that contribute to the Sustainable Development Goals (SDGs), mainly in SDG #5 (Gender Equality), #7 (Affordable and Clean Energy), #8 (Decent Work and Economic Growth), #9 (Industry, Innovation and infrastructure), #13 (Climate Action) and #17 (Partnerships for the Goals).

From 2019 to 2024, the value of BDMG’s social loan portfolio grew from R$990 million to R$1.8 billion, about 25% of which went to MSMEs. It is estimated that the project avoided 24,700 tons of CO2 annually by 2025.