Banco de Desenvolvimento de Minas Gerais (Brazil)

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Member Overview

The Banco de Desenvolvimento de Minas Gerais (BDMG) is a state-level development bank in Brazil, operating under the jurisdiction of the State of Minas Gerais. Its primary objective is to foster economic, financial, and social development within the state. Established in 1962, the bank provides financial services to businesses across all sectors and supports public infrastructure projects.

In recent years, BDMG has adapted to the evolving landscape of global development banks, placing increasing emphasis on sustainable investments. The bank has outlined five impact commitments for its operations:

Financial Inclusion: Providing micro and small companies with access to favorable financial services to support job retention.
Clean Energy: Expanding the renewable energy matrix by facilitating investments in clean energy sources and energy efficiency.
Priority Investments with a Positive Impact: Actively promoting productivity and job creation through strategic investments.
Inclusive and Sustainable Cities: Supporting infrastructure projects focusing on essential aspects such as sanitation, health, education, urbanization, and inclusive spaces.
Low Carbon Agriculture: Contributing to soil regeneration, biodiversity, and the reduction of Greenhouse Gas (GHG) emissions.

Activities

In 2023, BDMG achieved a historic disbursement record of R$2.9 billion, marking a 19% increase compared to 2022. Notably, there was a significant increase in transfers to the public sector, growing by 89% compared to 2022, totaling R$329 million. Investment projects also saw a 71% increase, contributing to the consolidation of the state as a competitive hub for the implementation of long-term projects, with evident repercussions in local productive chains.

While supporting the productive sector of Minas Gerais, BDMG remained committed to sustainable development. Forty percent of the amount disbursed in 2023 was aligned with at least one of the United Nations Sustainable Development Goals (SDGs), underscoring the bank's dedication to generating positive impacts for the population.

Highlights of BDMG's activities in 2023 include:

Disbursing R$376 million to renewable energy projects throughout the year, a 59% increase compared to 2022. These funds were distributed among 126 projects in 113 municipalities, with 80% of them having an HDI below the Brazilian average.
Photovoltaic solar energy projects accounted for 67% of the disbursement for Energy Efficiency (EE) and Renewable Energy (ER).
Collaboration with the European Investment Bank (EIB): Since October 2019, approximately EUR 120 million has been allocated for financing 62 projects in 57 municipalities, with 40 of them having an HDI below the Brazilian average. For Small and Medium-sized Enterprises (SMEs), around 2,900 clients have been financed, totaling R$184 million disbursed.

Diversification of funding sources remained a priority, with a closing balance of R$1.49 billion in fundraising from five multilateral institutions by the end of the period, along with the structuring of new negotiations.

Impact

In 2022, BRL 238.2 million was disbursed to 3,622 SMEs, with 19.5% of clients falling under microcredit criteria. These resources contributed to the retention of more than 16,460 jobs, demonstrating the positive social effects of financing Micro and Small companies.

Through photovoltaic solar energy projects and biomass-based energy plants, BDMG has facilitated an installed capacity of over 140MW. These projects are estimated to generate 630 GWh of renewable energy annually, enough to supply an average of 210 thousand families of four. Furthermore, these initiatives are expected to prevent the emission of almost 40,000t of CO2e/year, making a significant contribution to mitigating climate change.