Posaidon Capital and NINT, an ERM Group company with legal support from Madrona Fialho Advogados have been advising the State of Pará (Brazil) in structuring an innovative BRL350m (USD70m) sustainability-linked loan to finance The State Program for River Conservation (Pró-Rios). In addition to implementing new State policies for river conservation, the SLL includes step-down mechanisms linked to the ongoing protection of the São Benedito and Azul – rivers of global climate and biodiversity significance.
With Federal approval, the State of Pará has just published an RfP for financial institutions interested in issuing the SLL – details below for interested lenders.
This instrument has required coordination and support from several Ministerial bodies (SEMAS, SEPLAD, SEFA) at State and Federal levels including the provision of guarantees and fiscal policies. It has created a new policy framework enabling the SLL to be replicated for other climate and biodiversity activities. Posaidon has been involved in this instrument since leading its original inception.
The project has to date been funded by generous support from the Andes-Amazon Initiative of the Gordon and Betty Moore Foundation.
Link to RfP for financial institutions below:
