First funding granted by FONPLATA to non-sovereign public sector, the Brazilian BDMG
FONPLATA granted an 8-year US$36-million revolving line of credit to the Development Bank of Minas Gerais – BDMG, Brazil, which will be used to fund projects initiated by the municipalities of the State of Minas Gerais.
This operation with BDMG (Banco de Desenvolvimento de Minas Gerais) is the first funding granted to a non-sovereign public sector in the history of FONPLATA, and provides the possibility of including projects similar in nature that have already been identified in other member countries.
BDMG is a financial institution founded in 1962 under the control of the State of Minas Gerais, which owns almost 90% of its capital. The purpose of BDMG is to promote the State’s economic, financial, and social development. Thus, it supports micro, small, medium, and big enterprises and works to meet the funding demand of the State’s municipalities.
This action will enable FONPLATA to increase the volume of funding to Brazilian municipalities, which due to the size and geography of the country, is more effective when implemented through strategic partnerships such as the one that will be carried out through the approved operation. The first stage of the funding provided by this line of credit will support 17% of the projects of all municipalities in this State.