The development agency “Desenvolve São Paulo” from Brazil, obtained a loan of 110 million dollars from the Inter-American Development Bank (IDB) to finance sustainable projects of municipalities and micro, small and medium enterprises (MSMEs) in the state of São Paulo.

The loan objective is to close financing gaps for infrastructure projects in the country to promote a sustainable economic recovery. Half of the resources will go to 53 municipalities, which will strengthen their public infrastructure according to high criteria of sustainability and climate resilience. The rest of the resources will go to about 850 businesses located mostly in the most vulnerable areas of the state of São Paulo, as well as enterprises led by women and Afro-descendants.

The IDB loan has a 25-year term, with a grace period of 5.5 years and at an interest rate based on SOFR. The New Development Bank (NDB) will also contribute an amount equivalent to up to 90 million dollars in parallel for financing of the program.