EMGA completes US$140 million working capital raise for BTG Pactual with financing from Proparco and DEG

BTG Pactual BTG is the largest investment bank in Latin America, the 6th largest bank in Brazil by shareholders equity and a key player in providing loans and guarantees to a broad set of clients, from SMEs to large corporations.

RIO DE JANEIRO, BRAZIL – The US$140 million loan to BTG Pactual was originated, structured, and negotiated by Emerging Markets Global Advisory Limited (EMGA), the emerging markets investment bank, which continues to execute capital raising operations in most emerging countries, despite COVID-19.

BTG Pactual trading room, São Paulo. (Photo internet reproduction)
BTG Pactual trading room, São Paulo. (Photo internet reproduction)

Commentating on the transaction, Caio Zanette, Associate Partner of BTG Pactual said, “EMGA has successfully secured foreign financing from two leading European financial institutions allowing us to deliver on our climate finance strategy” He added, “BTG Pactual is committed in its support to sustainable development in Brazil, particularly to combat climate change.”

Sajeev Chakkalakal, Managing Director of Investment Banking at EMGA, said: “It was a pleasure to help BTG’s climate finance strategy by advising on this landmark facility aimed at funding the growth of the bank’s green loan portfolio across Brazil. Proparco and DEG are long term partners of EMGA and their position as pre-eminent Development Finance Institutions also offers a new strategic funding source for BTG.”

Jeremy Dobson, Managing Director of EMGA, added: “The key to this transaction has been the sound management and financial position of BTG Pactual; both were important factors that allowed Sajeev and EMGA’s Investment Banking team to complete this funding in conjunction with the deep institutional framework and financial capacity that Proparco and DEG represent.”

Proparco’s Philippe Serres, Regional Director for South America, commented that “with this transaction, Proparco and DEG show their support for BTG Pactual’s sustainability strategy, which will have a positive effect in Brazil and beyond by channelling additional funding to projects that contribute to reducing greenhouse gas emissions. BTG Pactual’s unique market position in the region means that it has a key role to play in achieving the Sustainable Development Goals.”

Gudrun Busch, Director Financial Institutions Latin America at DEG commented: “DEG is happy to work with a partner such as Banco BTG Pactual S.A. We congratulate the company on the vision demonstrated by executing this landmark transaction. The conclusion of an ambitious agreement between industry leader Banco BTG Pactual and us as European DFI is exemplary. By providing a large climate facility to a renowned, major market player in the most populous and largest Latin American economy, DEG demonstrates its commitment to promoting climate-friendly finance and contributing to the UN Sustainable Development Goals.”

BTG Pactual BTG is the largest investment bank in Latin America, the 6th largest bank in Brazil by shareholders equity and a key player in providing loans and guarantees to a broad set of clients, from small and medium sized businesses (SMEs) to large corporations. BTG is a pioneer in promoting climate finance in Brazil and plays a pivotal role in channeling resources towards projects with a positive impact in the mitigation of the effects of climate change.

The US$140 million loan to BTG Pactual was originated, structured, and negotiated by Emerging Markets Global Advisory Limited (EMGA)
The US$140 million loan to BTG Pactual was originated, structured, and negotiated by Emerging Markets Global Advisory Limited (EMGA)

Proparco, AFD’s private sector financing arm, has been working for 40 years to promote sustainable economic, social and environmental development. Proparco participates in financing and supporting companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its actions focus on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health, education. Its operations aim to strengthen the contribution that private players make to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activities contribute to creating jobs and decent incomes, the provision of essential goods and services, and the fight against climate change.

DEG- Deutsche Investitions- und Entwicklungsgesellschaft is a Development Finance Institution (DFI) and a subsidiary of KfW Group. For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in developing and emerging-market countries. DEG provides its customers with tailor-made solutions, including financing, promotional programs and advice tailored to individual needs. They can thus develop successfully and sustainably, while generating local added value and creating qualified jobs. With a portfolio of around EUR 9 billion in approximately 80 countries DEG is one of the world’s largest private-sector development financiers.

Emerging Markets Global Advisory Limited (EMGA), based in London and New York, helps financial institutions and corporations seeking new debt or equity capital. EMGA’s multinational team combines the decades of experience needed to complete transactions in most emerging countries, including Brazil, which remains a key market. EMGA continues to expand its geographic reach, solidifying its place as a pre-eminent niche investment bank focused on emerging markets.

 

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