Brazil's Cargill unveils $240 mln 'ESG Time Deposit' - statement
SAO PAULO, Feb 6 (Reuters) - The Brazilian unit of U.S. grain trader Cargill announced a $240 million time deposit that will be used to fund Environment, Social and Governance (ESG) projects in the South American food powerhouse, according to a Monday statement.
The transaction, which Cargill and partner bank Banco do Brasil (BBAS3.SA) called the first "ESG Time Deposit" in Latin America, will finance projects that promote sustainable development and a low-carbon economy.
Farmers and entrepreneurs are candidates to take out loans backed by Cargill's time deposit, a press representative told Reuters.
In the statement, Cargill said prospect borrowers will have to meet sustainable finance criteria defined by Banco do Brasil, which is a leading agribusiness lender.
Cargill, one of Brazil's biggest grain exporters, said the move is in line with a commitment to foster an ever more sustainable production chain.
Banco do Brasil commands a roughly 60% share of Brazil's total farm loans, the statement said.
Last year, Cargill selected a series of projects aimed at recovering 100,000 hectares of degraded areas in Brazil, in up to five years, according to the statement.
Cargill's other ESG initiatives include projects to optimize the use of water, reduce greenhouse gas emissions and promote use of biomass to generate energy for it plants, the statement said.
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