The Board of Executive Directors of the Inter‑American Development Bank (IDB) has approved an $80 million investment loan to Banco Regional de Desenvolvimento do Extremo Sul (BRDE) to support critical infrastructure development and the recovery of micro, small, and medium‑sized enterprises (MSMEs) in Brazil’s Rio Grande do Sul State.
The project, Prosul Reergue Sul, aims to ease credit constraints, enabling construction and strengthening resilience to future natural disasters. It will also support MSMEs in restoring production of goods and services in areas affected by the 2024 floods. Up to 7% of MSME financing is expected to benefit women-led businesses.
Direct beneficiaries include developers of small-scale infrastructure projects in transportation, energy, and water sectors, as well as MSMEs with annual revenues up to R$300 million affected by extreme weather events. The broader population of Rio Grande do Sul is expected to benefit indirectly through enhanced resilience, increased productivity, and employment generation.
The IDB loan has a 25-year maturity with a 5.5-year grace period and an interest rate linked to the Secured Overnight Financing Rate (SOFR). Following Board approval, the operation will proceed according to national legislation prior to signature and implementation.
This initiative is part of a wider IDB response to the 2024 floods in Rio Grande do Sul, which included mobilizing emergency resources, donations, and technical experts to assess damages. The effort supports the state’s medium- and long-term recovery while promoting resilience.
The Inter-American Development Bank (IDB), founded in 1959, works with public sector partners across Latin America and the Caribbean to design innovative solutions for sustainable and inclusive development, leveraging financing, technical expertise, and knowledge to promote growth and well-being in 26 countries.
