website serves as the representative for BNP Paribas and Citibank in the realm of sustainability-linked finance
Italian Export Credit Agency Guarantees Sustainability-Linked Pre-Export Finance Facility for Brazilian Aluminum Producer
A groundbreaking sustainability-linked pre-export finance facility has been secured by Companhia Brasileira de Alumínio (CBA), the largest aluminum producer in Brazil, from BNP Paribas and Citibank, N.A. The facility, worth a combined $50 million USD and €44 million EUR, is guaranteed by SACE, Italy’s export credit agency, as part of its Push Strategy program.
The transaction, which reached financial close on July 31, 2025, is structured around a carbon footprint key performance indicator (KPI) and other sustainability performance targets aimed at managing and reducing greenhouse gas emissions (GHG). This aligns with CBA’s public sustainability strategy targeting Scope 1, 2, and 3 emissions intensity reductions.
SACE’s involvement in the transaction is part of its Push Strategy program, which guarantees loans to international counterparts who commit to increasing their purchase of goods and services from Italy. For CBA, this means complying with environmental targets while also enhancing trade relationships with Italian suppliers related to aluminum production inputs such as industrial equipment and engineering services.
The legal advisory role for the transaction was played by Norton Rose Fulbright, with a cross-border team led by José Cobeña, supported by Dan Spencer, Juliana Souza (São Paulo), Arturo Sferruzza, and Giulio Mariano (Milan). Their work involved coordinating Brazilian, Italian, UK, and US legal standards to ensure alignment between sustainability requirements and export financing terms.
The sustainability performance targets and KPIs for the facility focus on reducing CBA’s carbon footprint (GHG emissions), consistent with their Sustainability-Linked Financing Framework. Independent second-party opinions confirmed the alignment of this financing structure with the Sustainability-Linked Loan Principles set by the Loan Market Association.
This financing form represents a growing trend in linking export finance and sustainability outcomes. SACE’s Push Strategy has supported similar projects in emerging markets, including Brazil, and sectors like energy, agribusiness, and manufacturing.
In summary, the sustainability-linked pre-export finance facility provided by BNP Paribas and Citibank, N.A. for CBA is a significant step forward in integrating environmental, social, and governance (ESG) metrics into international export finance. This transaction exemplifies how such financing can channel capital towards sustainable growth, leveraging regulatory and governmental export support mechanisms.
| Aspect | Details | |------------------------------------|------------------------------------------------------------------------------------------------| | Facility types | Sustainability-linked pre-export finance facility | | Lenders | BNP Paribas, Citibank N.A. | | Borrower | Companhia Brasileira de Alumínio (CBA) | | Sustainability KPIs | Carbon footprint reduction targets (Scope 1, 2, 3 emissions intensity) | | Guarantee | SACE under its Push Strategy program (Italian government-backed export credit agency) | | Legal advisors | Norton Rose Fulbright, cross-border team coordinating Brazilian, Italian, UK, and US frameworks | | Link to ESG frameworks | Aligned with Sustainability-Linked Loan Principles by Loan Market Association | | Strategic benefits | Enhances CBA’s environmental performance, deepens trade ties with Italian suppliers |
- The alignment of the sustainability performance targets with the Sustainability-Linked Financing Framework of the aluminum producer, CBA, underscores the involvement of environmental science in managing and reducing greenhouse gas emissions.
- The transaction, which involves industry players such as BNP Paribas, Citibank, and SACE, illustrates the role of finance in fostering sustainable growth by channeling capital towards climate-change mitigation efforts.
- The Italian Export Credit Agency, SACE, has demonstrated its commitment to environmental concerns by guaranteeing a sustainability-linked pre-export finance facility for an aluminum producer, showcasing the intersection of the environmental-science and business sectors in addressing climate-change.
