Represents the role of BNP Paribas and Citibank in sustainable financing initiatives.
Sustainability-Linked Dual Currency Pre-Export Finance Facility Boosts Trade Between Brazil and Italy
A significant financing deal has been struck between BNP Paribas, Citibank, SACE, and Companhia Brasileira de Alumínio (CBA), the largest aluminum producer in Brazil. The dual currency pre-export finance facility, worth USD 50 million and EUR 44 million, is designed to prefinance CBA's current and future aluminum and related commodity exports.
The financing agreement is noteworthy for its sustainability-linked features, which include a carbon footprint Key Performance Indicator (KPI) and emissions reduction targets embedded in the financing terms. This alignment with measurable environmental, social, and governance (ESG) outcomes is part of SACE's efforts to support international counterparts while promoting enhanced trade relations and procurement from Italy.
The deal was facilitated by the Push Strategy program, an initiative by SACE that aims to increase purchases of goods and services from Italy. The guarantee was provided under this program, making it easier for CBA to access capital while supporting the Italian economy.
The complex legal requirements linking export financing to ESG targets were skillfully managed by a team of lawyers from Norton Rose Fulbright. The team, led by José Cobeña and Dan Spencer, navigated the intricacies of Brazilian, Italian, UK, and US legal frameworks to implement sustainability-linked export financing terms. Giulio Mariano, based in Milan, and Juliana Souza, based in São Paulo, were also part of the financing team.
This sustainability-linked financing facility underscores the growing trend towards sustainable financing within commodity export sectors. It incentivizes emissions management while supporting trade and industrial cooperation between Brazil and Italy. The transaction reached financial close on July 31, 2025.
[1] Norton Rose Fulbright press release, [link to press release] [2] BNP Paribas press release, [link to press release]
- The SACE-facilitated financing agreement between CBA and international partners, such as BNP Paribas and Citibank, is not only a booster for trade between Brazil and Italy but also an excellent example of environmental-science applications in finance, with sustainability-linked terms that include climate-change metrics like a carbon footprint Key Performance Indicator (KPI) and emissions reduction targets.
- Industrial cooperation between Brazil and Italy receives financial support from the sustainability-linked Dual Currency Pre-Export Finance Facility, which, while enabling CBA's aluminum and related commodity exports, prioritizes environmental considerations within the business domain, thus demonstrating the potential synergy between science, finance, and the environment.
- The environmental-science implications of this deal extend beyond the two countries involved, setting a precedent for the commodity export industry to adopt sustainable financing practices focused on environmental, social, and governance (ESG) outcomes, thus encouraging climate-change mitigation efforts in various business sectors.
