Low Carbon Business Action Location in Brazil Phase Ii

LOW CARBON BUSINESS ACTION LOCATION IN BRAZIL PHASE II

FINANCIAL FACILITATION GUIDE

ST-TA-005/2018

Elaborated by Low carbon Business Action in Brazil Date: December 2018 Last Review: 06 February 2019

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Content LIST OF ACRONYMS ...... 3 EXECUTIVE SUMMARY ...... 3 INTRODUCTION ...... 5 BRAZILIAN FINANCIAL INSTITUTIONS AND INSTRUMENTS ...... 6 AGE-RIO ...... 6 BADESC - Agência de Fomento do Estado de Santa Catarina S.A ...... 9 Banco do Brasil ...... 13 BDMG (Banco Desenvolvimento de Minas Gerais) ...... 14 BNB -Banco do Nordeste ...... 16 BNDES ...... 19 BRDE (Regional Development Bank of Extremo Sul) ...... 21 CRP (Companhia de Participações) ...... 23 CAIXA ECONOMICA FEDERAL ...... 25 DESENVOLVE SP (Agência de Desenvolvimento Paulista) ...... 27 FAPESP (Fundação de Amparo à Pesquisa do Estado de São Paulo) ...... 30 FINEP ...... 31 Fomento Paraná...... 33 INSEED – Investimentos ...... 35 Santander Brazil ...... 36 SICREDI ...... 40 EUROPEAN FINACIAL INSTITUTIONS AND INSTRUMENTS ...... 43 BPI - Banque publique d'investissement (FRANCE) ...... 43 DEG INVEST (GERMANY) ...... 45 EKN (SWEDEN) ...... 46 EULER HERMES (FRANCE) ...... 47 The Netherlands Enterprise Agency- RVO (THE NETHERLANDS) ...... 47 SACE (ITALY) ...... 48 SEK (SWEDEN) ...... 49 SID Bank (SLOVENIA) ...... 50 SOFID (PORTUGAL)...... 51 PROPARCO (FRANCIA) ...... 52 UKEF (UK)...... 52 UNICREDIT (ITALY)...... 54 CONCLUSIONS ...... 55

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

LIST OF ACRONYMS

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

EXECUTIVE SUMMARY

The following document represents a guide for the European and Brazilian companies participating in the LCBA Brazil project, which thanks to the partnership agreements reached between them, have the objective of developing low carbon projects in Brazil. In the current phase of the project, companies face the difficult question of how to finance and implement the ideas developed in the concept notes jointly proposed.

Currently, there are a multitude of financing tools apart from own funds to choose from, national or regional programs and grants, financing through business angels, investment funds, financial institutions, etc. But not all or not always these tools are adequate or adapted to the specific needs of the LCBA projects.

The following document analyzes the financial instruments that companies can request through banks and financial institutions, both European and Brazilian. Its value proposition is given by the field work developed with each of the mapped institutions, with the objective of collecting as much information as possible about the financial instruments they operate. The purpose is to homogenize the information for better understanding and to compare the advantages and disadvantages of each instrument.

For each instrument, a series of indicators have been analyzed, considered of great relevance when applying and / or starting a financing procedure, among which: Financing currency; Type of instrument, Sectors, Interest rates, Credit ticket (min / max), Company turnover, Disbursement period, Payment period, Grace period, Brazilian state applicable, other factors.

The analysis was carried out through a contact round to the institutions firstly mapped in Brazil and European member states, in which the need was exposed and preliminary information on the applicable and disposable financial institutions and instruments was compiled. Afterwards, a research of information on secondary sources was made, for finally develop a second contact round with the selected institutions to collect detailed information of the indicators not founded publicly.

The development of the financial guide is one of the bases for carrying out the mission of financial coaching to participating companies in the LCBA Brazil and will be used for advising them in an objective and personalized manner on which are the most convenient financial instruments to develop their projects, to which institutions they should go, and what minimum requirements are necessary for applying.

One of the main conclusions reached after the exhaustive analysis, is that the funds provided by Brazilian banks are more accessible to finance the LCBA projects. This is mainly because the institutions of EU member countries do not always finance in Brazilian reals and in cases where they have not yet worked with Brazil, the intermediation of a local bank is required.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

INTRODUCTION

The following guide lists each of the financial institution contacted in the short-term financial facilitation mission, both in Brazil and Europe, by the LCBA team. Furthermore, the instruments reported by the different institutions were analyzed and all relevant indicators are detailed to allow a better and quicker financial coaching to the companies participating in the LCBA phase II.

The document is divided into two main sections, one detailing Brazilian institutions and their financial instruments, and the other one corresponds to European institutions.

The following table list all the anlysed institutions in both regions

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

BRAZILIAN FINANCIAL INSTITUTIONS AND INSTRUMENTS

AGE-RIO

Description: AgeRio is a State Agency for Development whose mission is to promote, through financial solutions, the sustainable development of the State of Rio de Janeiro, with excellence in the provision of services.

Financial instruments:

• 1 - AGE RIO - AGE-Rio Investimentos • 2 - AGE RIO - Credit line for sustainable products • 3 - AGE RIO - FINEP Inovacred • Energy efficiency product based on IPCA + 5.8% with a 10-year financing term Indicators of financial instruments:

• 1 - AGE RIO - AGE-Rio Investimentos: an instrument that finances equipment, working capital and pre-operational expenses for projects and studies

Indicator by 1 - AGE RIO - AGE-Rio Investimentos instrument Indicator Name Financing currency BRL Type of instrument credit Sectors all Interest rates from 0,78% monthly rate (indexed to SELIC) Credit ticket (min / max) R$ 15.000 a R$ 20 M Company turnover -Medium and Large Enterprises: Financial Statements for the last 3 years; -Small companies: Balance of the last year closed and balance sheet more updated; and - Startups (up to 2 years): Financial projections for the next 5 years. Disbursement period 60 days Payment period Up to 60 months Grace period Up to 18 months Other The institution requires 130% of guarantee. The types of guarantees accepted are letter of guarantee, guarantee fund (FAMP / FGO BB) and possibly financial applications Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities?

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

• 2 - AGE RIO - Credit line for sustainable products

Indicator by 2 - AGE RIO - Credit line for sustainable products instrument Indicator Name Financing currency BRL Type of instrument credit Sectors Photovoltaic; Sustainable products Interest rates from 0,78% monthly Credit ticket (min / max) R$ 15.000 a R$ 20 Millon Company turnover -Medium and Large Enterprises: Financial Statements for the last 3 years; -Small companies: Balance of the last year closed and balance sheet more updated; and - Startups (up to 2 years): Financial projections for the next 5 years. Disbursement period 60 days Payment period Up to 78 months Grace period Up to 24 months Other The institution requires 130% of guarantee. The types of guarantees accepted are letter of guarantee, guarantee fund (FAMP / FGO BB) and possibly financial applications Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

• 3 - AGE RIO - FINEP Inovacred

Indicator by 3 - AGE RIO - FINEP Inovacred instrument Indicator Name Financing currency BRL Type of instrument credit Sectors all Interest rates from 0,53% monthly rate (indexed to TJLP)

TJPL aa TJPLA + 1% Credit ticket (min / max) R$ 150 mil – R$ 3MM R$ 150 mil – R$ 3 R$ 150 mil – R$ MM 10 MM Company turnover Up to 3,6MM From 3,6 to 16 MM Between 16 MM and 90 MM -> TJLP + 1% aa Min financial contribution 10% of the project 20% of the project Disbursement period 60 days Payment period Up to 72 months Grace period Up to 24 months Other The institution requires 130% of guarantee. The types of guarantees accepted are letter of guarantee, guarantee fund (FAMP / FGO BB) and possibly financial applications Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

BADESC - Agência de Fomento do Estado de Santa Catarina S.A

Description: The Badesc State Promotion Agency aims to promote the economic and social development of the State of Santa Catarina, through the practice of applying financial resources within its jurisdiction, provided that the borrower has a CNPJ located in Santa Catarina.

Financial instruments:

• 4 - BADESC - BADESC Fomento • 5 - BADESC - BADESC Facil • 6 - BADESC - BADESC Competitividade • 7 - BADESC - BADESC Energia • 8 - BADESC - FINEP Inovacred • 9 - BADESC - FINEP Inovacred Expresso • 10 - BADESC - BNDES MPME Inovadora • 99 - BADESC – BNDES Crédito Pequenas Empresas • *might have new Biogas lines available due to new Brazilian state Biogas law Indicators of financial instruments:

• 4 - BADESC - BADESC Fomento • 5 - BADESC - BADESC Facil • 6 - BADESC - BADESC Competitividade • 7 - BADESC - BADESC Energia

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Indicator by 4 - BADESC - BADESC 5 - BADESC - 6 - BADESC - 7 - BADESC - instrument Fomento BADESC Facil BADESC BADESC Energia Indicator Name Competitividade Financing currency BRL BRL BRL BRL Type of instrument credit credit credit credit Sectors industrial, all all Energy: All items commercial and for installation of service sectors a photovoltaic power station Interest rates from 0,89% monthly 1,9% - 2,5% 1,10% monthly 1,06% monthly rate Credit ticket 80 % of the project. Min R$ 15mil - Max R$ 1,5 MM Min R$ 250 mil – (min/max) Min R$ 250 mil - Max Max R$ 250 mil Max R$ 2MM. R$ 5 MM 80% of the project Company turnover * at least 12 months * * of billing Disbursement Released in one Released in a Released in a single Released in two period disbursement or in single disbursement disbursement, accordance with the disbursement one at the project's needs beginning ando ne at the end Payment period Up to 78 months Up to 30 months Up to 48 months Up to 84 months Grace period Up to 18 months Up to 6 months Up to 12 months Up to 12 months Brazilian state Santa Catarina applicable Other The maximum Requires third associated working party guarantor (s), capital leverage limit not connected to shall be 30% (thirty the company, with percent) on the value assets higher than of the part of the 125% of the fixed investment. financing amount Funds available for EU No entities? EU country (s) applicable Not applicable Documentation necessary to Not applicable prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR Yes entities? BR state(s) applicable for BR All since the credit borrower has installed a branch in SC (with Brazilian CNPJ entities and registered at the State of SC (trough Junta Comercial de SC – JUCESC) Documentation necessary to Documents listed in doc. "Carta consulta". Confirm with BADESC how prove company is registered companies registered in other states apply in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. carta_consulta.docx

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Financial product applicable Yes to any entity independent of its Brazilian state of origin? In case the investment must Santa Catarina be in a specific Brazilian state(s), indicate were in order to be covered by this financial instrument. * no minimum or maximum turnover amount is required, used only as a parameter for payment capacity in the Lines with Equity (BADESC)

• 8 - BADESC - FINEP Inovacred / 9 - BADESC - FINEP Inovacred Expresso

Indicator by 8 - BADESC - FINEP Inovacred 9 - BADESC - FINEP Inovacred Expresso instrument Indicator Name Financing currency BRL BRL Type of instrument credit credit Sectors Innovative projects Innovative companies (Attention / subsidy / technology park) Interest rates 0,53% monthly 0,77% monthly Credit ticket (min / max) Min R$150 mil – Max R$10MM. Max R$200 mil. 100% of the innovation Company turnover Up to R$90M of annual turnover Up to R$16M of annual turnover Disbursement period Released in up to 4 disbursements or Released in a single disbursement in accordance with the project's needs Payment period Up to 72 months Up to 36 months Grace period Up to 24 months Up to 12 months Brazilian state applicable Santa Catarina Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin?

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

• 10 - BADESC - BNDES MPME Innovadora / 99 - BADESC – BNDES Crédito Pequenas Empresas

Indicator by 10 - BADESC - BNDES MPME 99 - BADESC – BNDES Crédito instrument Inovadora Pequenas Empresas Indicator Name Financing currency BRL BRL Type of instrument credit credit Sectors Innovative companies (patent / multisector subsidy / technology park Interest rates 1,09% monthly Close to 1,3% a.m. (16,8% a.a.) Credit ticket (min / max) Max R$ 200 mil. 100% of the Max 500.000 each 12 months innovation Company turnover Up to R$ 90M of annual turnover Disbursement period Released in one disbursement or in Each 12 months accordance with the project's needs Payment period Up to 36 months Up to 60 months Grace period Up to 12 months Up to 24 months Brazilian state applicable Santa Catarina Santa Catarina Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Banco do Brasil

Description: The Banco do Brasil S.A. is a Brazilian financial institution, constituted in the form of Mixed Economy Society, with participation of the Union (Brazilian federal government) with 70% of the shares.

Financial instruments:

• 11 - Banco do Brasil - Programa ABC: Low Carbon Agriculture Program (Programa ABC) • 12 - Banco do Brasil – Inovagro: investment for innovation in rural properties • 13 - Banco do Brasil - Pronaf Eco: Agroenergia Program - credit for renewable energy generation in rural properties (by Pronaf Eco or other credit lines) Indicators of financial instruments:

• 11 - Banco do Brasil - Programa ABC/ 12 - Banco do Brasil - Inovagro / 13 - Banco do Brasil - Pronaf Eco

Indicator by 11 - Banco do Brasil - 12 - Banco do Brasil - 13 - Banco do Brasil - instrument Programa ABC Inovagro Pronaf Eco Indicator Name Financing currency BRL BRL BRL Type of instrument credit credit credit Sectors Agro Agro Agro Interest rates 7,5% annual rate 7,5% annual rate 2,5-5,5% annual rate Credit ticket (min/max) Max R$2 MM Max R$1 MM Max R$150 mil Company turnover Disbursement period Payment period 10 years 10 years 10 years Grace period Up to 60 months Up to 36 months Up to 36 months Brazilian state Applicable to any region of Brazil applicable Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

BDMG (Banco Desenvolvimento de Minas Gerais)

Description: BMDG is a public company controlled directly and indirectly by the State of Minas Gerais, which holds 89.79% of the bank’s capital, followed by the Development Company of Minas Gerais – CODEMIG, with 9.26%, by Minas Gerais Participações with 0.94% and by the Department of Roads – DER with 0.01%. The bank has four strategic pillars: (i) sustainability; (ii) innovation; (iii) regional and social development and (iv) agribusiness.

Financial instruments:

• 14 - BDMG - BDMG Solar Fotovoltaic • 15 - BDMG - Finame Energias Renováveis • 16 - BDMG - BNDES Automático • 100 - BDMG – BNDES Crédito Pequenas Empresas

Indicators of financial instruments:

• 14 - BDMG - BDMG Solar Fotovoltaic / 15 - BDMG - Finame Energias Renováveis / 16 - BDMG - BNDES Automático

Indicator by 16 - BDMG - 14 - BDMG - BDMG 15 - BDMG - Finame instrument BNDES Fundo Clima BNDES Solar Fotovoltaic Energias Renováveis Indicator Name Automático Financing currency BRA BRA BRA BRA Type of instrument Credit credit credit credit Photovoltaic Sectors Photovoltaic energy Photovoltaic energy Photovoltaic energy energy Up to 16,22% p.a. (1,26 from TLP + Interest rates 4,03% p.a. From TLP + 3,75% p.a p.m.) 4,92% p.a BRA 5 mil to BRA 700 BRA 5 mil to BRA 700 Up to BRA 20 Credit ticket (min/max) Up to BRA 20 MM mil mil MM Up to BRA 4,8 MM Up to BRA 30 MM from BRA 30 MM from BRA 30 MM Company turnover (annual) (annual) (annual) (annual) Up to 24 Only one Disbursement period Only one disbursement Only one disbursement months disbursement (Grace period) Payment period 12 to 60 months 12 to 60 months 120 months 120 months

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Only brazilian Also imported Only brazilian Only brazilian Equipment equipament equipment equipament equipament Up to 24 Grace period Up to 6 months n/a Up to 24 months months Brazilian state Minas Gerais and surrounding regions applicable Other requests should be done through e-mail requests should be done through [email protected] Business Managers Funds available for EU No entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR Yes entities? BR state(s) applicable The BDMG finances only Brazilian companies based in Minas Gerais or bordering states. for BR entities The border states are: São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Goiás, Mato Grosso do Sul and the Federal District. Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product No applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Minas Gerais Brazilian state(s), indicate were in order to be covered by this financial instrument.

• 16 - BDMG - BNDES Automático / 100 - BDMG – BNDES Crédito Pequenas Empresas

Indicator by 100 - BDMG – BNDES Crédito instrument 16 - BDMG - BNDES Automático Pequenas Empresas Indicator Name

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Financing currency BRA BRL Type of instrument credit credit Sectors Photovoltaic energy multisector Interest rates from TLP + 4,92% p.a Close to 1,3% a.m. (16,8% a.a.) Credit ticket (min / max) Up to BRA 20 MM Max 500.000 each 12 months Company turnover from BRA 30 MM (annual) Disbursement period Up to 24 months (Grace period) Each 12 months Payment period 120 months Up to 60 months Grace period Up to 24 months Up to 24 months Equipment Only brazilian equipament Brazilian state applicable Minas Gerais and surrounding regions Funds available for EU No entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR Yes entities? BR state(s) applicable for BR The BDMG finances only Brazilian companies based in Minas Gerais or entities bordering states. The border states are: São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Goiás, Mato Grosso do Sul and the Federal District. Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable No to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Minas Gerais state(s), indicate were in order to be covered by this financial instrument.

BNB -Banco do Nordeste

Description: Banco do Nordeste do Brasil S / A - BNB - is a banking institution dependent on the Brazilian federal government. It is a development bank and its purpose is to promote the sustainable development of the Northeast region of Brazil through the technical and financial training of regional productive agents.

Financial instruments:

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

• Project finance with resources from FNE (Fundo Constitucional de Financiamento do Nordeste), including: o FNE Trade and services o FNE Agribusiness o FNE Pro-Infrastructure o FNE Green o FNE Water o FNE Sun o FNE Industrial o FNE Pro-tourism o FNE Innovation

• 18 - Banco do Nordeste – Fundeci: (Science and Technology fund): grants (non- reimbursable funds) for scientific research, technology dissemination and innovation. For public entities and Non-profit organizations. Indicators of financial instruments:

• 17 - Banco do Nordeste - FNE

Indicator by 17 - Banco do Nordeste - FNE instrument Indicator Name Financing currency BRL Type of instrument credit Sectors Agrobusinesses, infrastructures, business and services, industry, tourism Interest rates *See table below Credit ticket (min/max) Up to 90% of the project Company turnover Disbursement period From 116 working days. 90 days if the project is about energy infrastructure Payment period Up to 20 years Grace period Up to 08 years Brazilian state applicable Maranhao, Ceara, Piaui, Rio Grande del norte, Paraiba, Pernambuco, Alagoas, Bahía, Sergipe, Minas Gerais. Other Imported equipment are considered in the Equity. For industrial projects, the required guaranty is 130% of financed amount and for infrastructure projects, only 100%. Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities?

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

BR state(s) applicable for Indicate Brazilian state(s) applicable BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific SUDENE area Brazilian state(s), indicate were in order to be covered by this financial instrument.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

BNDES

Description: The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil. The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors. In any supported undertaking, from the analysis phase up to the monitoring, the BNDES emphasizes three factors it considers strategic: innovation, local development and socio-environmental development.

Financial instruments:

• 19 - BNDES - BNDES CLIMATE FUND • 20 - BNDES - FINAME (machinery) • 21 - BNDES - FINEM (direct financing) • 22 - BNDES - BNDES Automatico (small projects) • 106 - BNDES - BNDES Direto 10 Indicators of financial instruments:

• 19 - BNDES - BNDES CLIMATE FUND

Indicator by 19 - BNDES - BNDES CLIMATE 106 - BNDES - BNDES Direto 10 instrument FUND Indicator Name Financing currency BRL BRL Type of instrument credit credit Sectors Innovative companies (patent / capital goods, defense, health, subsidy / technology park) education, energy, economics - creative, CIS, TICS and innovation

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Interest rates from 4% p.a. to 4.5% p.a.; TLP or Selic (6.49% pa) + BNDES depending on the borrower's remuneration (1.3% pa) + credit risk rate revenue (variable according to customer risk). Credit ticket (min / Max R$ 30 MM every 12 months Min R$ 1MM – Max R$ 10 MM max) Company turnover *For energy sector: • Experience in the last five years in the execution of projects using the technologies of the Project for which financial support has been requested (at least 3 and at most 8 projects) whose sum of values must be equal to or greater than the value of the Project. • Link to the company of at least one professional in the area of engineering or related technical areas • Net Operating Revenue (ROL) equal to or greater than the expected annual revenue from the Project; and • Shareholders' Equity (PL) equal to or greater than the expected annual revenue from the Project. Disbursement period Payment period Up to 144 months Up to 84 months *Up to 132 for the energy sector related projects Grace period Up to 24 months Up to 24 months *Up to 12 months for the energy sector related projects Other 9 different areas of the fund, with Real guarantees (mortgage, pledge, some key for LCBAB such us: fiduciary property, receivables, etc.) and Renewable Energies, Solid / or personal (guarantee or guarantee), Waste, Carbon Management defined prior to hiring. and Services, Innovative The customer with gross operating Projects etc. revenue (ROB) up to R $ 300 million may complement the guarantee with the Investment Guarantee Fund (BNDES FGI). Funds available for EU (Yes/ No) entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable Indicate Brazilian state(s) for BR entities applicable

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Indicate Brazilian state(s) Brazilian state(s), applicable indicate were in order to be covered by this financial instrument.

BRDE (Regional Development Bank of Extremo Sul)

Description: BRDE is currently a credit borrower of the BNDES, and reviews credit lines to companies in southern Brazil. Its objective is to support and monitor the development of projects to increase the competitiveness of enterprises of all sizes in the region. The New Business Department - DEPEN - is taking responsibility for the LCBAB project, as well as for sending information. Financial instruments:

• 23 - BRDE – Agrobusiness: (irrigation; storage, tractors, floriculture, fruit growing; dairy cattle; poultry, swine, cattle, caprinos, sheep; family agroindustry, agricultural cooperatives) • 24 - BRDE - AFD (Agence Française de Développement) • 25 - BRDE – FUNGETUR • 26 - BRDE - FINEP Inovacred • 27 - BRDE - MODERINFRA / MODERAGRO / ABC / Inovagro • 28 - BRDE - BNDES Automático /BNDES Finame / BNDES Giro / BNDES Fundoclima • 101 -BRDE - BNDES Crédito Pequenas Empresas Indicators of financial instruments:

• 24 - BRDE - AFD (Agence Française de Développement) • 25 - BRDE – FUNGETUR • 26 - BRDE - FINEP Inovacred • 101 -BRDE - BNDES Crédito Pequenas Empresas

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Indicator by 24 - BRDE - AFD 25 - BRDE – 26 - BRDE - FINEP 99 - BADESC – BNDES instrument (Agence FUNGETUR Inovacred: Crédito Pequenas Indicator Name Française de Empresas Développement) Financing currency BRL / EUR BRL BRL BRL Type of instrument credit credit Sectors clean and Tourism multisector renewable energy, rational and efficient use of water, waste management and recycling, sustainable agriculture and sustainable cities Interest rates Euribor 3M + 2% INPC + 6% p.a for TJLP for small companies Close to 1,3% a.m. p.a. + EUR/BRL development TJLP + 1% per year, for (16,8% a.a.) rate difference projects; or INPC + medium companies 5% p.a. for equipment acquisition Credit ticket (min/max) Min R$ 600K Up to 90% for Max 500.000 each 12 Max EUR10 M microenterprises, months minimum R$150 thousand and maximum R$ 3M Up to 80% for small business, minimum R$ 150 thousand and maximum R$ 3 M Up to 80% for average company, minimum R$ 150 thousand and maximum R$ 10 M Company turnover Disbursement period Each 12 months Payment period Up to 240 months Total up to 96 months Up to 60 months for development projects; up to 60 months for equipment acquisition Grace period Up to 60 months Up to 24 months Up to 24 months for development projects; up to 12 months for equipment acquisition Brazilian state Rio Grande do Sul, Santa Catarina, Paraná states applicable

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Other Collateral: minimum 130% of loan amount Funds available for EU No entities? EU country (s) Not applicable applicable Documentation Not applicable necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR Yes entities? BR state(s) applicable Grande do Sul, Santa Catarina, Paraná and Mato Grosso do Sul for BR entities Documentation We follow norms of Banco Central do Brasil and our funding providers. We request these necessary to prove following documents, among others: company is registered Inscrição estadual (state registration) in the applicable CNPJ Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product Yes applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Rio Grande do Sul, Santa Catarina, Paraná and Mato Grosso do Sul Brazilian state(s), indicate were in order to be covered by this financial instrument.

CRP (Companhia de Participações)

Description: CRP operate in Private Equity and Venture Capital sectors in Brazil for over 35 years. It has a portfolio of 10 funds established. CRP prospects investment opportunities in the Southern Region of Brazil and also São Paulo. The participation strategy is the identification of companies to bfuy shares and remain as partners for a maximum of 5 years, seeking liquidity

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Financial instruments

• 29 - CRP - CRP VI Venture • 30 - CRP - CRP Empreendedor • 31 - CRP - CRP VII

*They are currently creating a new investment fund focused on social impact with companies of minimum net revenue of R$ 20M.

*In the middle of 2019 they will launch another fund with companies up to R$ 4M (likely to include Low Carbon projects): with focus on sustainability: water and energy Indicators of financial instruments: • 29 - CRP - CRP VI Venture • 30 - CRP - CRP Empreendedor • 31 - CRP - CRP VII

Indicator by 29 - CRP - CRP VI 30 - CRP - CRP 31 - CRP - CRP VII instrument Venture Empreendedor Indicator Name Financing currency BRL BRL BRL Type of instrument Private Equity Private Equity Private Equity Sectors Interest rates Investment limit R$ 12M R$ 12M R$ 60 Company turnover R$60 M R$100M RS 313 M Disbursement period Payment period Grace period Brazilian state applicable the Southern Region of Brazil and also São Paulo Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

CAIXA ECONOMICA FEDERAL

Description: It is a financial institution, in the form of a public company of the Brazilian federal government, with its own assets and administrative autonomy based in Brasília - DF, and with branches throughout the Brazilian national territory. Body linked to the Ministry of Finance of Brazil. Financing insruments

• 32 - Caixa Economica Federal - BNDES FINAME • 33 - Caixa Economica Federal - BNDES Automatico • 102 - Caixa - BNDES Crédito Pequenas Empresas Indicators of financial instruments: • 32 - Caixa Economica Federal - BNDES FINAME • 33 - Caixa Economica Federal - BNDES Automatico • 102 - Caixa - BNDES Crédito Pequenas Empresas

Indicator by 32 - Caixa Economica Federal - 33 - Caixa Economica Federal - 102 - Caixa - BNDES BNDES FINAME BNDES Automatico Crédito Pequenas instrument Empresas Indicator Name Financing currency BRA BRA BRL Type of instrument Bank credit Bank credit credit Sectors Companies enrolled in the Companies enrolled in the multisector National Registry of Legal National Registry of Legal Entities (CNPJ), Entities (CNPJ), Microenterprises, Small Microenterprises, Small Companies, Medium Companies, Medium Enterprises I, Medium Enterprises I, Medium Enterprises II and Large Enterprises II and Large Companies (BNDES Companies (BNDES Classification as a function of Classification as a function of Gross Operational Fiscal Gross Operational Fiscal Income) Income) Interest rates FINAME Renewable energy: BNDES MPME - TLP + BNDES Close to 1,3% a.m. (16,8% rate (1,42%) + Caixa rate a.a.) establish case by case.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

TLP or SELIC + BNDES rate MPME INOVADORA - TLP + (1,05%) + Caixa rate + Surcharge BNDES rate (1,05%) + Caixa rate of SELIC. establish case by case. Other FINAME: GRANDES EMPRESAS – TLP or SELIC + BNDES rate INCENTIVADA -- TLP + BNDES (1,42%) + Caixa rate + Surcharge rate (1,85%) + Caixa rate of SELIC. establish case by case. FINAME Ônibus e Caminhões GRANDES EMPRESAS – PADRÃO Grandes empresas: - TLP + BNDES rate (2,25%) + TLP or SELIC + BNDES rate Caixa rate establish case by (2,25%) + Caixa rate + Surcharge case. of SELIC. Credit ticket (min / Min: R$ 30.000,00 Mín: R$ 100.000,00 Max 500.000 each 12 max) Máx: R$ 20.000.000,00 for months MPME INOVADORA. Company turnover Minimum of 12 months of Minimum of 12 months of constitution and gross annual constitution and gross annual fiscal revenue. fiscal revenue. Disbursement Up to 180 days from the date of According to the Project. Each 12 months period approval of the Transaction by BNDES Payment period FINAME Renewable energy up Up to 240 months. Up to 60 months to 84 months; Other FINAME up to 60 months. Grace period Up to 12 months Up to 36 months Up to 24 months Brazilian state All states applicable Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary Companies enrolled in the National Registry of Legal Entities (CNPJ), to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

DESENVOLVE SP (Agência de Desenvolvimento Paulista)

Description: It is a financial institution of the State Government of São Paulo that offers the best financing options to promote sustainable development for small and medium-sized companies in São Paulo.

Financial instruments

Credit for innovation:

• 34 - Desenvolve SP - Inovacred • 35 - Desenvolve SP - Inovacred Expresso • 36 - Desenvolve SP - Lina Incentivo à Tecnologia

Sustainable products:

• 37 - Desenvolve SP - Linha Economia Verde • 38 - Desenvolve SP - Linha Economia Verde – Máquinas • 39 - Desenvolve SP - Projetos de Eficiência Energética - BNDES Automatico Indicators of financial instruments:

• 34 - Desenvolve SP – Inovacred • 35 - Desenvolve SP - Inovacred Expresso • 36 - Desenvolve SP - Lina Incentivo à Tecnologia

Indicator by 34 - Desenvolve SP - 35 - Desenvolve SP - 36 - Desenvolve SP - Lina instrument Inovacred Inovacred Expresso Incentivo à Tecnologia Indicator Name Financing currency BRL BRL BRL Type of instrument credit credit credit Sectors Innovative projects Innovative companies Interest rates 0,56% monthly 0,77% monthly 0,33% monthly + SELIC Credit ticket (min / Min R$150 Max R$10M Max R$200.000 Up to R$ 30M. max) mil – Max R$3MM. Company turnover Up to Up to R$90M Up to R$16M of annual R$ 360.000 / year (or R$16M annual turnover projected) up to R$ annual 300 M /year

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Disbursement period biannual The way of release is Within the grace only by refund period Payment period Up to 72 months Up to 36 months Up to 96 months Grace period Up to 24 months Up to 12 months Up to 24 months Brazilian state São Paulo São Paulo São Paulo applicable Other The offer guarantee products: FDA; FAMPME; FGI; FGO *Guarantee funds always act as a complement to a real guarantee (principal guarantee), which may be composed of real estate or bank guarantee. Funds available for (Yes/ No) EU entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for (Yes/ No) BR entities? BR state(s) applicable Indicate Brazilian state(s) applicable for BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be Indicate Brazilian state(s) applicable in a specific Brazilian state(s), indicate were in order to be covered by this financial instrument.

• 37 - Desenvolve SP - Linha Economia Verde/ 38 - Desenvolve SP - Linha Economia Verde – Máquinas / 39 - Desenvolve SP - Projetos de Eficiência Energética - BNDES Automatico

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Indicator by 37 - Desenvolve SP - Linha 38 - Desenvolve SP - 39 - Desenvolve SP - Economia Verde Linha Economia Verde – Projetos de Eficiência instrument Máquinas Energética - BNDES Indicator Name Automatico Financing currency BRL BRL BRL Type of instrument credit credit Sectors Agronidustry, Change of fuels, Linha Economia Verde waste management, renewable energies, energy efficiency, transport, etc. Interest rates From 0,17% 0,25% From 0,17% monthly + monthly + SELIC monthly SELIC +SELIC

Credit ticket (min / R$ 20.000 to R$ 30.000.000 R$ 20.000 to R$ R$ 20.000 to R$ max) 30.000.000 30.000.000 Rate depending on Up to R$90M From 90R$ company turnover to R$300M Company turnover R$ 370,000 to R$ 300M R$ 360.000 / year (or R$ 360.000 / year (or projected) up to R$ 300 projected) up to R$ M /year 300 M /year Disbursement period Within the grace period Within the grace period Within the grace period Payment period Up to 96 months Up to 48 months Up to 96 months Grace period Up to 24 months Up to 12 months Up to 24 months Brazilian state São Paulo applicable Other The offer guarantee products: FDA; FAMPME; FGI; FGO *Guarantee funds always act as a complement to a real guarantee (principal guarantee), which may be composed of real estate or bank guarantee. Funds available for (Yes/ No) EU entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for (Yes/ No) BR entities? BR state(s) applicable Indicate Brazilian state(s) applicable for BR entities Documentation necessary to prove company is registered in the applicable Brazilian

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be Indicate Brazilian state(s) applicable in a specific Brazilian state(s), indicate were in order to be covered by this financial instrument.

FAPESP (Fundação de Amparo à Pesquisa do Estado de São Paulo)

Description: It is a foundation localized in Sao Paulo with the objective of providing scholarships, funds and programs to support research, education, and innovation in public and private institutions and enterprises in the State of Sao Paulo.

Financial instruments

Programa PIPE FAPESP: finances up to 100% innovation projects in companies as long as they involve a research problem

• 40 - FAPESP - Pipe Fase I • 41 - FAPESP - Pipe Fase 2 • 42 - FAPESP - Pipe Fase 3 Indicators of financial instruments:

• 40 - FAPESP - Pipe Fase I • 41 - FAPESP - Pipe Fase 2 • 42 - FAPESP - Pipe Fase 3

Indicator by 40 - FAPESP - Pipe Fase I 41 - FAPESP - Pipe Fase 42 - FAPESP - Pipe Fase instrument (technical viabililty) 2 (Prototyping) 3 (Commercial Indicator Name implementation) Financing currency BRL BRL n/a Type of instrument Sectors Interest rates Credit ticket (min / max) Max R$200mil R$ 1M n/a Company turnover

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Disbursement period Project execution period Up to 9 months Up to 24 months n/a Brazilian state applicable São Paulo Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for Indicate Brazilian state(s) applicable BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Indicate Brazilian state(s) applicable Brazilian state(s), indicate were in order to be covered by this financial instrument.

FINEP

Description: FINEP is a Brazilian public company promoting science, technology and innovation in companies, universities, technological institutes and other public or private institutions, headquartered in Rio de Janeiro. FINEP aims to promote Brazil's economic and social development through public funding for Science, Technology and Innovation at companies, universities, technological institutes and other public or private institutions.

Financial instruments

• 43 - FINEP - Inovacred: delegated to regional development Brazilian banks • 44 - FINEP - Inovação Pioneira

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

• 45 - FINEP - Inovação Competitividade • 46 - FINEP - Inovação Desempenho Indicators of financial instruments:

• 44 - FINEP - Inovação Pioneira • 45 - FINEP - Inovação Competitividade • 46 - FINEP - Inovação Desempenho

Indicator by 44 - FINEP - Inovação 45 - FINEP - Inovação 46 - FINEP - Inovação instrument Pioneira Competitividade Desempenho Indicator Name Financing currency BRL BRL BRL Type of instrument Credit Credit credit Sectors All All all Interest rates TJLP + 0,5 % p.a TJLP + 1,5 % p.a TJLP + 3,5 % p.a Credit ticket (min / max) FINEP can cover up to 90%+ bônus of 15% + insurance First ticket: 1.5 M Eur at 2M Eur Second ticket: major projects where the final client is identified, and this will register directly with FINEP Company turnover From R$ 90 M Disbursement period from 2/3 months and can reach 8/9 months Payment period 96 months 36 months 24 months Grace period 58 months 84 months 60 months Brazilian state applicable Other The guarantees they usually request: Stand by letter of credit / insurance guarantee / endorsement FINEP can finance imports equipment without requesting to have Brazilian national content since the technology is absorbed locally Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for Indicate Brazilian state(s) applicable BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ +

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Indicate Brazilian state(s) applicable Brazilian state(s), indicate were in order to be covered by this financial instrument.

Fomento Paraná

Description: Fomento Paraná is a regional development bank that aims to provide financial support for initiatives to modernize and expand the activities of SMEs and entrepreneurs to stimulate the generation of employment and income in the state. The company also seeks to boost business development in the area of innovation and technology, granting credit to technology- based companies, including those that go through incubators. The details of the financial lines are in charge of the Planning Advisors. At the moment of attendance to the beneficiary companies of the project, the team of the Market Direction will be also involved.

Financial instruments

• 47 - Fomento Paraná - BNDES Credit Lines: automático, Finame, Fundo Clima, Giro, MPME innovadora • FINEP credit lines : Finep inovacred • 48- Fomento Paraná - Fomento Energia: Own state investment fund (which must be available with own resources in 3 years): • 49 - Fomento Paraná - Innovation Funds • 103 – Fomento Paraná - BNDES Crédito Pequenas Empresas Indicators of financial instruments:

• 48- Fomento Paraná - Fomento Energia • 103 – Fomento Paraná - BNDES Crédito Pequenas Empresas

Indicator by 48- Fomento Paraná - Fomento 103 – Fomento Paraná - BNDES Energia Crédito Pequenas Empresas instrument Indicator Name Financing currency BRL BRL Type of instrument Debt instrument credit Sectors Energy multisector Interest rates From 0,93% to 1,49 % Close to 1,3% a.m. (16,8% a.a.) Credit ticket (min / Max. R$ 500.000 Max 500.000 each 12 months max) Company turnover BRL 4.800.000,00 max

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Payment period 120 months* Up to 60 months 60 months ** Grace period 12 months * Up to 24 months 6 months** Brazilian state Paraná applicable Other Funds available for EU (Yes/ No) entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR Yes entities? BR state(s) applicable Paraná for BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Indicate Brazilian state(s) applicable Brazilian state(s), indicate were in order to be covered by this financial instrument.

*when the investment involves, in value, more than 70% for products manufactured or purchased in the state of Paraná (according to invoice). ** other cases

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

INSEED – Investimentos

Description: INSEED, is a resource management company focused on “early stage” innovation, with 15 years of experience in technology-based entrepreneurship. For INSEED, generating value is turning knowledge into business, through a structured process of joint construction

Financial instruments

• 50 - INSEED Investimentos - Criatec 3 • 51 - INSEED Investimentos - Criatec • 52 - INSEED Investimentos - INSEED FIMA

Indicators of financial instruments:

• 50 - INSEED Investimentos - Criatec 3

Indicator by instrument 50 - INSEED Investimentos - Criatec 3 Indicator Name Financing currency Type of instrument equity Sectors focus on the IT and New Materials sectors, agro Interest rates Investment limit From R$1,5M to R$10 M (average is R$·M Company turnover Over R$ 12M Disbursement period Fund period Investments ca be made until 2020 Fund closes in 2026 Average time staying in the company’s capital is 5 years Brazilian state applicable Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for Indicate Brazilian state(s) applicable BR entities Documentation necessary to prove company is registered in the applicable Brazilian

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Indicate Brazilian state(s) applicable Brazilian state(s), indicate were in order to be covered by this financial instrument.

Santander Brazil

Description: Santander started to assign direct resources to sustainable development since 2002, when implemented the socio-environmental risk analysis to corporate customers and created the first financing line for sustainability. Since then, they have evolved on this premise and, from 2015, defined as priorities fostering the low-carbon agriculture and renewable energy, especially photovoltaics.

- The Corporate department of the bank serves companies with more than 200 M R$ billing (12/15 M R$ per month). - The "retail" department serves billing companies from 80 to 200 M R$ per year.

Financial instruments

• 53 - Santader Brasil - CDC Sustentável Solar: Crédito para a compra de sistemas para a geração de energia solar • 54 - Santader Brasil - CDC Agro Solar: Financia a compra de equipamentos para geração de energia renovável em propriedades rurais • 56 - Santader Brasil - BNDES Giro • 57 - Santader Brasil - BNDES Cartão • 58 - Santader Brasil - BNDES Automático • 59 - Santader Brasil - BNDES ABC • 60 - Santader Brasil – Moderinfra • 61 - Santader Brasil – Moderagro • 62 - Santader Brasil – Inovagro • 63 - Santader Brasil – FINAME • 104 - Santader Brasil - BNDES Crédito Pequenas Empresas

Indicators of financial instruments:

• 56 - Santader Brasil - BNDES Giro

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

• 57 - Santader Brasil - BNDES Cartão • 58 - Santader Brasil - BNDES Automático • 59 - Santader Brasil - BNDES ABC

Indicator by 56 - Santader Brasil - BNDES Giro 57 - 58 - Santader Brasil - BNDES 59 - instrument Santader Automático Santader Indicator Name Brasil - Brasil - BNDES BNDES Cartão ABC Financing BRL BRL BRL BRL currency Type of credit credit credit credit instrument Sectors all Priority No priority Agro, sectors sectors forestry Interest rates Fator Fator • Fator Fator TLP x Fator TLP x Fator TLP x 7,5% per 100% TLP 100% TLP 100% TLP Fator Taxa Fator Taxa Fator Taxa year ou 100% ou 100% ou 100% do BNDES do BNDES do BNDES SELIC x SELIC x SELIC x (1,50% ao (1,93% ao (2,33% ao Fator Taxa Fator Taxa Fator Taxa ano) x ano) x ano) x do BNDES do BNDES do BNDES Fator Taxa Fator Taxa Fator Taxa (1,50%a.a.) (1,93%a.a.) (2,33%a.a.) Santander Santander Santander x Fator x Fator x Fator (negociada (negociada (negociada Taxa Taxa Taxa caso a caso a caso a Santander Santander Santander caso) - 1 caso) - 1 caso) - 1 (negociada (negociada (negociada caso a caso a caso a caso) - 1. caso) - 1. caso) - 1

Credit ticket Up to R$70 M for SMEs Up to Up to Up to (min / max) Up to R$100 M for big companies 2R$ M. R$20M. R$2,2M 100% of 100% of the the project product investment value Company Up to R$ From R$ over R$ SMEs Big Big turnover 90 MM: 90 MM to 300 MM: companies companies R$ 300 MM: Payment 60 months From 3 From 60 period to 48 months to months 144 months depending on project type Grace period From 3 to 24 months (up to R$20 M From 12 operations) to 96 months depending on the

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

project type Brazilian state applicable Other Funds available for EU entities? (Yes/ No)

EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR entities? (Yes/ No)

BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable to (Yes/ No) any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian state(s), Indicate Brazilian state(s) applicable indicate were in order to be covered by this financial instrument. *TLP = long term tax

• 104 – Santader Brasil - BNDES Crédito Pequenas Empresas • 60 - Santader Brasil – Moderinfra • 61 - Santader Brasil – Moderagro • 62 - Santader Brasil – Inovagro • 63 - Santader Brasil – FINAME

Indicator by 104 – Santader 60 - Santader 61 - Santader 62 - Santader 63 - Santader Brasil - BNDES Brasil – Brasil – Brasil – Brasil - FINAME instrument Crédito Pequenas Moderinfra Moderagro Inovagro Indicator Name Empresas

Financing currency BRL BRL BRL BRL BRL Type of instrument credit credit credit Sectors multisector Interest rates Close to 1,3% 7,5% per year 8,5% per year 6,5% per year Fator TLP ou Selic a.m. (16,8% a.a.) + Fator Taxa do BNDES (1,5% to 1,93% ao ano*) +

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Fator Taxa Santander (negociada caso a caso) – 1. Credit ticket (min / Max 500.000 Up to R$2,2M Up to R $ Up to R$ 1,1M From 80% to max) each 12 months 220,000 for 100% of product replacement of value bovine or buffalo matrices and R $ 5,000 per animal Company turnover Disbursement Each 12 months period Payment period Up to 60 months Up to 120 Up to 120 From 60 to 120 From 30 to 120 months months months months Grace period Up to 24 months Up to 36 Up to 36 Up 36 months 3 to 24 months months months Brazilian state applicable Other Funds available for EU (Yes/ No) entities? EU country (s) applicable Indicate EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR (Yes/ No) entities? BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable (Yes/ No) to any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian Indicate Brazilian state(s) applicable state(s), indicate were in order to be covered by this financial instrument.

• 53 - Santader Brasil - CDC Sustentável Solar • 54 - Santader Brasil - CDC Agro Solar

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Indicator by 53 - Santader Brasil - CDC 54 - Santader Brasil - CDC Agro Solar instrument Sustentável Solar Indicator Name Financing currency BRL BRL Type of instrument credit Sectors Energy Energy Interest rates From 1,08% (month) From 1,08% Credit ticket (min / max) Up to 100% of the value Up to 80% of the product value Company turnover 80 to 200 M R$ per year 80 to 200 M R$ per year Payment period Up to 60 months Up to 48 months Grace period Brazilian state applicable Other Funds available for EU entities? (Yes/ No)

BR state(s) applicable for BR Indicate Brazilian state(s) applicable entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable to (Yes/ No) any entity independent of its Brazilian state of origin? In case the investment must be in a specific Brazilian state(s), Indicate Brazilian state(s) applicable indicate were in order to be covered by this financial instrument.

SICREDI

Description: SICREDI is a cooperative financial institution made up of 116 affiliated cooperatives, which operate with a service network with more than 1,587 branches throughout Brazil. They also have 5 Regional headquarters. This operating system allows for scale gains and increases the potential of the cooperatives to engage in activity in a market where large financial conglomerates operate. SICREDI supports microentrepreneurs in the agribusiness sectors and in projects of a maximum of R$ 1M that are also already associated to the SICREDI network

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Contact their closest SICREDI and associate SICREDI in order to participate on the network

Financial Instruments

• credit lines of the BNDES : o 65 - SICREDI – Moderagro o 66 - SICREDI – Inovagro o 67 - SICREDI - BNDES Automático Agro o 68 - SICREDI - ABC agro o 105 - SICREDI - BNDES Crédito Pequenas Empresas Indicators of financial instruments:

• 65 - SICREDI – Moderagro • 67 - SICREDI - BNDES Automático Agro • 68 - SICREDI - ABC agro • 105 - SICREDI - BNDES Crédito Pequenas Empresas

Indicator by 65 - SICREDI – 67 - SICREDI - 68 - SICREDI - ABC 105 - SICREDI - Moderagro BNDES agro BNDES Crédito instrument Automático Agro Pequenas Indicator Name Empresas Financing currency BRL BRL BRL BRL Type of instrument Rural credit or Bank Rural credit or Rural credit or credit credit Bank credit Bank credit Sectors agro agro agro multisector Interest rates 7,0% a.a. 6,0% a.a. Close to 1,3% Ou TLP Ou a.m. (16,8% a.a.) TCR Pós-Fixada TCR Pós-Fixada Credit ticket (min / From R$ 1 mil to R$ From R$ 1 mil to Forom R$ 1 mil to Max 500.000 max) 20 million R$ 20 million R$ 20 million each 12 months Company turnover R$ 1 billion Disbursement 33 days 63 days 36 days Each 12 months period Payment period Up to 120 months Up to 120 Up to 144 months Up to 60 months months Grace period Up to 36 months Up to 36 months Up to 36 months Up to 24 months Brazilian state All states applicable Other Funds available for (Yes/ No) EU entities? EU country (s) Indicate EU country (s) applicable applicable Documentation necessary to prove company is registered in the countries mentioned above.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide i.e. VAT Number registered in an EU country… Funds available for (Yes/ No) BR entities? BR state(s) Indicate Brazilian state(s) applicable applicable for BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product (Yes/ No) applicable to any entity independent of its Brazilian state of origin? In case the investment must be Indicate Brazilian state(s) applicable in a specific Brazilian state(s), indicate were in order to be covered by this financial instrument.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

EUROPEAN FINACIAL INSTITUTIONS AND INSTRUMENTS

BPI - Banque publique d'investissement (FRANCE)

Description: Bpifrance is 50% owned by the State and 50% by Caisse des Dépôts.Since its creation, the group has been organized around two poles: Bpifrance Financing and Bpifrance Investissement.

Financial Instruments

• 69 - BPI - Prospecting Insurance: Bpifrance offers cash support and insurance against the loss suffered in case of commercial failure of the prospection abroad. Guaranteed expenses: travel expenses, commercial events, creation or reinforcement of an export service, VIE, creation of subsidiary, market study, advertising, website, etc. • 70 - BPI - International Growth Loan: it allows SMEs and ETI to finance multiple expenses related to international development (tangible and intangible investments, external growth, recruitments, LIFE, etc.). • 71 - BPI - Export Credit: As part of a sale of equipment or service from a company located in France to a foreign buyer (company or state), Bpifrance supports exporters with the export credit that allows them to be paid cash while offering a financing solution to their foreign buyer.

Indicators of financial instruments:

• 69 - BPI - Prospecting Insurance • 70 - BPI - International Growth Loan • 71 - BPI - Export Credit

Indicator by 69 - BPI - Prospecting 70 - BPI - International 71 - BPI - Export Credit instrument Insurance Growth Loan Indicator Name Financing currency EUR EUR EUR Type of instrument insurance loan credit Sectors all All All Interest rates the company reimburses those generally found according to the evolution of on the market the turnover generated on the guaranteed area. Credit ticket (min / Average: 100.000€/ year From 30.000 to up to 85% of the max) 5MEUR. (within the "exported" portion. limits of equity and -for the Buyer credit: 5 quasi-equity of the and 25 M€ in lender alone company) and up to 75 million (by Beyond € 150,000, it Bpifrance) in co-financing accompanies a - for supplier credit medium-term bank buyback: 1 to 25 million €

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

loan or an equity contribution of an equal amount. Company turnover <100.000M€. Min. one year of minimum 3 years antiquity Disbursement 1 month period Payment period n/a 60 months The duration depends on Grace period n/a 24 months the amount of the market and the sector of activity. -For the repurchase of credit supplier it is generally of short duration max 2/3 years -For buyer credit the duration can be up to 10 years EU state applicable French companies Other provide cash payment of a deposit of at least 15% Funds available for EU entities? EU country (s) applicable Documentation necessary to prove company is registered in the countries mentioned above. i.e. VAT Number registered in an EU country… Funds available for BR entities? BR state(s) applicable for BR entities Documentation necessary to prove company is registered in the applicable Brazilian state(s) mentioned above i.e. CNPJ + Registro Junta Comercial do Estado, etc. Financial product applicable to any entity independent

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

of its Brazilian state of origin? In case the investment must be in a specific Brazilian state(s), indicate were in order to be covered by this financial instrument.

DEG INVEST (GERMANY)

Description: DEG INVEST is e a subsidiary of KfW. Since its foundation in 1962 DEG finances and promotes entrepreneurial initiative in developing and transition countries and assist German medium-sized companies as they move into foreign markets. DEG has been active in Brazil and in countries such as Argentina since the mid-1960s.

Financial instruments

• 72 - DEG Invest - Long-term loans • 73 - DEG Invest - Equity investments • 74 - DEG Invest - Mezzanine finance

Indicators of financial instruments:

• 72 - DEG Invest - Long-term loans

Indicator by 72 - DEG Invest - Long-term loans instrument Indicator Name Financing currency EUR / USD Type of instrument loan Sectors Energy, transport, utilities and telecommunications Interest rates not fixed – from 3,5% to 6% per year Credit ticket (min/max) Average is 10 MUSD Company turnover Medium size: R$200M Large size: from mR$400M to R$ 800 M Disbursement period Approval period from 6 to 12 months + 2 months for disbursement Payment period Average 7 to 8 years (up to 18 years) Grace period 1 to 2 years EU state applicable Other guarantees:130% to 150% of the value of the credit

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

EKN (SWEDEN)

Description: EKN is an export credit agency owned by the Swedish Government. They issue guarantees to Swedish companies when they export to Brazil or other countries and also gurantess to banks when they have loan agreements in connection to Swedish export.

Contact: Karin Westling Position: Senior Underwriter Contact Email: [email protected] Contact Phone: +46 70 147 03 85

Financial instruments

• 75 - EKN - Guarantees for exporting companies • 76 - EKN - Guarantees for banks Indicators of financial instruments:

• 75 - EKN - Guarantees for exporting companies • 76 - EKN - Guarantees for banks

Indicator by 75 - EKN - Guarantees for exporting 76 - EKN - Guarantees for banks instrument companies Indicator Name Financing currency Type of Guarantee (credit insurance) instrument Sectors Interest rates Premium matrix: export credits exceeding 12 months. (for Brazil, that has the category 4 in country risk)

A+ A B C D E F SOV+ SOV/CCO CC1 CC2 CC3 CC4 CC5 Standard MPR-10% MPR 150 170 190 290 430 Intervall (113) (126) MPR-160 160-180 180-250 250-360 360-500

* Risk class A is based on the minimum premium rate (MPR) permitted by the OECD Premium calculator: https://www.ekn.se/en/guarantees/calculate-premium/ Credit ticket (min/max) Company turnover Debtor categories: (A is the country’s strongest debtor- F is the weakest) A ‑ Central bank/Ministry of Finance etc. B ‑Central government agencies and ministries, state‑owned banks etc. C ‑First class companies, normal banks, other public debtors D ‑Normal companies, weak banks E ‑Weak companies, project risks with certain types of collateral F ‑Newly established/weak companies, project risks Period Over 12 months EU /Brazil state open for cover on Brazil applicable

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Other

EULER HERMES (FRANCE)

Description: Euler Hermes is a credit insurance company that offers a wide range of guarantee, collateral and collection services for the management of commercial accounts receivable between companies.

Financial instruments

An agreement with Banco do Brazil is needed for financing exports (final product/services) from Brazil to third countries.

• 77 - EULER HERMES - Banco Brasil PROEX ACE • 78 - EULER HERMES - Banco Brasil ACE Indicators of financial instruments:

• 77 - EULER HERMES - Banco Brasil PROEX ACE • 78 - EULER HERMES - Banco Brasil ACE

Indicator by 77 - EULER HERMES - Banco 78 - EULER HERMES - Banco Brasil ACE instrument Brasil PROEX ACE Indicator Name Financing currency BRL BRL Type of Export credit insurance Export credit insurance instrument Sectors Interest rates variable Credit ticket Export financing of 90% of Export financing of 90% of foreign exchange (min/max) foreign exchange Company turnover Up to R$ 600M Without limits Sales terms Goods: 30 to 180 days Goods: 30 to 180 days Services 30 to 180 days Services 30 to 180 days EU /Brazil state Brazil applicable applicable Other Adherence to the Union Guarantees: Export Credit Insurance, guarantee, Guarantees: Export Credit guarantee, letter of credit Insurance, guarantee, guarantee, letter of credit

The Netherlands Enterprise Agency- RVO (THE NETHERLANDS)

Description: The Netherlands Enterprise Agency is a government agency which operates under the auspices of the Ministry of Economic Affairs and Climate Policy. The Netherlands Enterprise Agency (RVO.nl) stimulates entrepreneurs in sustainable, agricultural, innovative and international business by offering project investment instruments to Dutch entrepreneurs (stablished in Netherlands).

Financial Instruments

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

• 79 - RVO - Dutch Trade & Investment Fund (DTIF) Indicators of financial instruments

• 79 - RVO - Dutch Trade & Investment Fund (DTIF)

Indicator by 79 - RVO - Dutch Trade & Investment Fund (DTIF) instrument Indicator Name Financing currency EUR Type of instrument Loan (Co-financing) Guarantee to EU-financer Investment fund Sectors All All *Not founds yet Interest rates In line with the market In line with the market and conditions Credit ticket (min/max) Max 49%. 15 M€ 60% of the credit risk non-established Company turnover Last 12 months no unregular withdrawals from the company, like extremely high dividend. Own contritubion Minimum 20% Minimum 20% Disbursement period This depends on the businessplan Payment period Up to 15 years Up to 15 years Grace period 1 year 1 year Other Conditions to apply: •A solid business plan that demonstrates the company is in a position to repay the funding. •The company is established in the Netherlands and conducts substantial activities in this country. This means that your Dutch operations generate enough revenue and profits through activities in the Netherlands for a co- financier to provide funding. •Preferably, the company has a co-financier and ideally contribute at least 20% yourself. •The market is wholly or partially unable to facilitate the financing application and you require additional funding. •The company activities are not featured on the FMO exclusion list. • The project will be implemented in accordance with the OESO guidelines for international corporate social responsibility (IMVO) for multinational companies

SACE (ITALY)

Description: SACE, a joint-stock company wholly owned by Cassa depositi e prestiti (cdp), that offers a wide range of insurance and financial products: export credit, investment protection, financial guarantees, surety bonds and factoring. Those are enriched with SIMEST products, ranging from investments in equity capital of companies to subsidised loans and export credit.

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Financial instruments

• 80 - SACE - Supplier Credit Policy • 81 - SACE - Buyer's Credit

Indicators of financial instruments • 80 - SACE - Supplier Credit Policy • 81 - SACE - Buyer's Credit

Indicator by 80 - SACE - Supplier Credit 81 - SACE - Buyer's Credit instrument Policy Indicator Name Financing currency Type of instrument insurance insurance Sectors Main interest in solar and energy efficiency Interest rates rate + Local bank between 2.5 - 4.5% year 3.7% to 4.3% (ranging between more risk: 7-8% to less risk: 6-7%) Credit ticket (min/max) Min. 200.000 € - Max. 3M€ Min. 17 M USD Company turnover Disbursement period Payment period 5 years From 2 to 8 years Grace period EU /Brazil state applicable Italian companies (or foreign Italian or foreign banks which associates or subsidiaries) fund the purchase of Italian goods and services Other

SEK (SWEDEN)

Description: SEK finances Swedish exporters and buyers of Swedish products and services. The institution functions as a complement to the commercial banks and can refinance long-term credits that EKN guarantees. In an export credit guaranteed by EKN, SEK can offer financing at market rates or a state-supported interest rate, CIRR.

In large the Swedish export credit system is two-party system where EKN provides credit insurance and SEK provides funding.

Financial instruments

• 82 - SEK - Export Credit Loan Indicators of financial instruments

• 82 - SEK - Export Credit Loan

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

Indicator by 82 - SEK - Export Credit Loan instrument Indicator Name Financing currency USD / EUR * Type of instrument Export credit loan Sectors all Interest rates CIRR-interest** 0,58% 0,88% 1,15% Payment period 2-5 years 5-8,5years >8,5 years Grace period EU state applicable Swedish exporter must be involved as a subcontractor, supplier or sponsor in the project Other The application is made by a commercial bank. They suggest approaching large international banks which have a substantial presence in Brazil

* Export credit loan would be denominated in USD or in EUR. They can lend in BRL however there are some structural issues to consider for the bank (primarily) in these instances to handle including fx risk etc. In general, EKN covered long term export credits involving banks are rarely denominated in currencies other than USD or EUR.

** An application for CIRR would be made by the bank or the exporter. In the latter case the intention would be to transfer the application to a bank later in the process. In any case the application needs to be made before a commercial contract is awarded SID Bank (SLOVENIA)

Description: SID bank is a promotional development and export bank 100% owned by the Republic of Slovenia. They provide banking and insurance services that promote sustainable development and improve the competitiveness of the Slovene economy.

Financial Instruments

• 83 - SID Bank - Financing to support Slovene exports (i.e equipment) • 84 - SID Bank - Financing to support expenses for developing businesses abroad

Indicators of financial instruments

• 83 - SID Bank - Financing to support Slovene exports • 84 - SID Bank - Financing to support expenses for developing businesses abroad

Indicator by 83 - SID Bank - Financing to support Slovene exports instrument 84 - SID Bank - Financing to support expenses for developing businesses abroad Indicator Name Financing currency EUR or USD Type of instrument Long term loans (buyer's credits and loans for foreign investments) Sectors All in accordance with international EHS and social standards Interest rates Determined on a case-by-case basis Credit ticket (min/max) 85 % of the export contract value or costs directly related to the project Company turnover Not defined Disbursement period In accordance with OECD Arrangement* Payment period From 25 months to maximum tenors allowed by OECD Arrangement Grace period Max 6 months from SPOC as defined by OECD Arrangement

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

EU state applicable Other Basic conditions: Slovene exporter, minimum 40% Slovene component in case of buyer's loans, majority Slovene shareholding in case of non- shareholders' loans, ECA insurance, borrower's financial report prepared by international standards

SOFID (PORTUGAL)

Description: Created in 2007 with the mission to contribute to the sustainable development of the countries with less developed economies, linked with the general strategy for the Portuguese cooperation and the Official Development Assistance (ODA). Since 2007 SOFID is the only development financial institution that supports investment projects of Portuguese companies in emerging and developing countries.

Financial instruments

• 85 - SOFID – Loans • 86 - SOFID - Guarantees • 87 - SOFID – Equity

Indicators of financial instruments • 85 - SOFID – Loans • 86 - SOFID – Guarantees • 87 - SOFID – Equity

Indicator by 85 - SOFID – Loans 86 - SOFID - Guarantees 87 - SOFID – instrument Equity Indicator Name Financing currency € (possible other currencies) Type of instrument Loan Guarantee Equity Sectors All (except real estate) All (except real estate) all Interest rates variable interest rates according to SOFID’s price variable, indexed to Euribor (from list, payed up-front depending on the 2% to 7%) quarterly or fraction project’s results Credit ticket (min/max) Min. 250.000€- Up to Min. 250.000€- Up to n/a 2,5M€ 2,5M€ Company turnover at least 3 years of at least 3 years of n/a antiquity (request last 3 antiquity (request last 3 years of financial years of financial statements) statements) Disbursement period 3 to 4 months Payment period Up to 10 years (maturity). In the guarantees according participation is to the loan maturity temporary in Grace period Up to 3 years Up to 3 years nature EU state applicable Brazilian companies (in this case they can be startups) but they must have at least 20% of shares from Portuguese companies. Other support companies with a minimum of 20% holdings held by Portuguese interests. The project should also be economically and financially viable

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

PROPARCO (FRANCIA)

Description: PROPARCO is a Development Financial Institution partly owned by French Development Agency (AFD) and private shareholders from the developed countries and developing nations, according to its website. PROPARCO promotes private investment in Africa, Asia, Latin America, and the Middle East to reach the Sustainable Development Goals (SDGs). PROPARCO finances operations which are economically viable, financially profitable, environmentally sustainable and socially equitable.[1] As of 2016, its shareholders' capital exceeded €693 million (US$773 million).

Financial instruments

• 88 - PROPARCO - FISEA technical assistance • 89 - PROPARCO – Loans • 90 - PROPARCO - Equity and quasi-equity • 91 - PROPARCO – Guarantees Indicators of financial instruments

• 89 - PROPARCO – Loans

Indicator by 89 - PROPARCO – Loans instrument Indicator Name Financing currency EUR / local currency is subject to hedge exchange at market rates. Type of instrument Loan Sectors Interest rates Euribor interest rate + 3% to 5% Credit ticket (min/max) From EUR 5M to EUR 10 M Company turnover Disbursement period Payment period 5 to 10 years, for a project finance in infrastructure, deadlines reach 15/18 years Grace period EU /Brazil state applicable French and local companies Other

UKEF (UK)

Description: UK Export Finance (UKEF), the UK’s award-winning export credit agency. The mission of UKEF is to ensure no viable export fails for lack of finance or insurance, while operating at no net cost to the taxpayer. UKEF offers attractive financing terms to buyers of UK goods and services than can help exporters make their offering more competitive.

Financial instruments

• 92 - UKEF - Direct Lending Facility – UKEF

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

• 93 - UKEF - Export Insurance Policy (EXIP) • 94 - UKEF - Supplier Credit Financing Facility • 95 - UKEF - Export Working capital schemes • 96 - UKEF - Bond Support Scheme

Indicators of financial instruments

• 92 - UKEF - Direct Lending Facility – UKEF / 93 - UKEF - Export Insurance Policy (EXIP)

Indicator by 92 - UKEF - Direct Lending 92 - UKEF - Direct Lending Facility instrument Facility – UKEF – UKEF) Indicator Name Financing currency BRL/ Pounds/ € Type of instrument Loan Insurance Sectors Low Carbon sectors Interest rates 3,8%. Premium risk is a fixed flat rate of 4% per year Credit ticket (min/max) 85% of the contract value Company turnover *3 years financial statements Disbursement period + 2 months Payment period Average. 8,5-10 years (up to 18 years) Grace period EU /Brazil state applicable Global United Kingdom Other

• 94 - UKEF - Supplier Credit Financing Facility • 95 - UKEF - Export Working capital schemes • 96 - UKEF - Bond Support Scheme

Indicator by 94 - UKEF - Supplier 95 - UKEF - Export 96 - UKEF - Bond instrument Credit Financing Working capital Support Scheme Indicator Name Facility schemes Financing currency Type of instrument Guarantee Guarantee Guarantee Sectors Interest rates Credit ticket (min/max) Min 5M pounds. 75% of the contract 80% of the contract 85% of the contract value value value Company turnover *3 years financial *3 years financial statements statements Disbursement period + 2 months + 2 months Payment period Grace period EU /Brazil state applicable Global United Kingdom United Kingdom Other

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

UNICREDIT (ITALY)

Description: UniCredit is A pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive client franchise: 26 million customers. UniCredit offers its clients both local and international expertise by providing access to market leading products and services in its 14 core markets through its European banking network

Financial instruments

• 97 - UNICREDIT - Multi-purpose credit line • 98 - UNICREDIT - Cross border plus credit

Indicators of financial instruments

• 97 - UNICREDIT - Multi-purpose credit line • 98 - UNICREDIT - Cross border plus credit

Indicator by 97 - UNICREDIT - Multi-purpose 98 - UNICREDIT - Cross border plus credit instrument credit line Indicator Name Financing currency EUR / USD EUR / USD Type of short-term loans, financing of overdraft, working capital loan, multi-purpose instrument export-import transactions, credit line, investment loan of maximum 5 years, guarantees bank guarantee or bank guarantee line Sectors Interest rates Credit ticket (min/max) Company turnover Disbursement period Payment period Grace period EU /Brazil state applicable Other

LOW CARBON BUSINESS ACTION PHASE II BRAZIL EuropeAid/138337/DH/SER/BR Financial Facilitation Guide

CONCLUSIONS

Once all the necessary information on the financial instruments of the selected entities was compiled and analyzed, some of the first problems for the development of the guide and coaching were revealed. The fact that not all the information published or provided by the entities is homogeneous, makes it difficult to analyze and compare the advantages and disadvantages of financial instruments. To compensate this fact, it has been tried to include all possible information together with the necessary explanations for its understanding (where applicable), links to websites and contacts of each entity for consultations on specific projects or doubts.

It is also important to highlight that the entities contacted emphasized the fact that the main requirements demanded by them are that the companies that apply need to have all the documentation in order, and the business plan prepared, which in turn speeds up the deadlines in the procedures of application.

In order to apply for financial instruments from EU member states financial institutions, it is usually necessary for a company from the country in question to have a % stake in the company that applies for the funding. Similarly, depending on the instrument (loans, credit, guarantee, etc.) the intermediation of a local banking institution is also required. Another important consideration is that few European entities finance in Brazilian reals (Euler Hermes, The Netherlands Enterprise Agency, UKEF, Proparco), and some can be subject to hedge exchange at market rates, such is the case of Proparco.

It can be concluded that it is more feasible and faster to request financial instruments from Brazilian entities, as in addition of providing financing in R$, there are several financing lines that can be obtained through different institutions, such as the FINEP Innovation Lines and the BNDS credit. lines, which are promoted by the following institutions: Age-Rio, BADESC, BDMG, BNDS, BRDE, Caixa Economica Federal, Desenvolve SP, FINEP, Fomento Paraná and Santander Brazil, Sicredi.