BNP Paribas introduces inclusive & sustainability-linked financing in microfinance

ESG
19/02/2024 News

BNP Paribas, in partnership with the JuST Institute, is pioneering a new era in microfinance with Inclusive & Sustainability-Linked Financing (ISLF+). This innovative approach aligns financial conditions with predefined environmental, social, and just transition objectives, offering reduced interest rates or technical assistance to microfinance institutions (MFIs) that meet these goals.

The first ISLF+ loans have been granted to three leading microfinance players: L'Adie in France, PerMicro in Italy, and Banco da Familia in Brazil. These institutions will focus on various objectives, including empowering women entrepreneurs, financing green projects, and promoting climate resilience.

L'Adie, serving entrepreneurs in France since 1989, aims to increase loans to underrepresented groups and reduce its carbon footprint. PerMicro, supporting microenterprises in Italy since 2007, prioritizes projects led by young people and women, along with investments in green technologies. Banco da Familia, operating in southern Brazil since 1998, focuses on renewable energy and water access projects, among other initiatives.

Laurence Pessez, Head of CSR at BNP Paribas, emphasizes ISLF+'s role in addressing climate change and biodiversity loss while supporting microentrepreneurs. Davide Forcella, Director of the JuST Institute, highlights the transformative nature of ISLF+, providing MFIs with the tools to advance social and environmental goals.

This collaboration represents a significant step towards sustainable development and inclusive finance, showcasing the potential of innovative financial solutions in addressing global challenges.

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