Brazil development bank signs deal with AIIB for nearly $3 billion in investments

(Reuters) – Brazilian development bank BNDES said on Monday that it has signed a deal with the Asian Infrastructure Investment Bank (AIIB) for the investment of 16.7 billion reais ($2.89 billion) in Latin America’s largest economy.

The deal, which was signed on the sidelines of the G20 summit in Rio de Janeiro, is aimed at funding projects aligned with Brazil’s climate fund and with government policies that seek to boost economic growth.

BNDES said in a statement that investments directed to growth-targeted projects must promote economic integration between Brazil and Asia in the sectors of transport infrastructure, energy connectivity and sanitation, among others.

The cooperation also aims to raise private capital for infrastructure projects, the Brazilian development bank added.

“The memorandum signed with AIIB proves that BNDES has resumed its mission of promoting economic and social development and that it has ample capacity to diversify funding and seek important international partners to finance sustainable and infrastructure projects that benefit both Brazil and Asia,” said BNDES President Aloizio Mercadante.

($1 = 5.7737 reais)

(Reporting by Luana Maria Benedito; Editing by Alistair Bell)