IDB Invest provides a $250 million financing to Grupo Simpar to support its robust investment program and promote decarbonization in the transportation industry in Brazil. Grupo Simpar is one of the largest logistics and transportation operators in the country.

The facility will support Grupo Simpar’s four largest entities –Movida, JSL, Vamos, and CS–, exclusively on investments and projects to promote and sustain its expansion and long-term decarbonization strategy by financing electric vehicles (EVs), hybrid, flex-fuel and biofuel -light and heavy- vehicles, in addition to investments in programs and technology to increase efficiency and reduce CO2 emissions of Grupo Simpar’s operations.

“Green is not only a future trend, but also already a present necessity. We need actions now, and therefore operations like these, which lead the way to cleaner technologies in a relevant sector, such as transport, with clients so important in the Brazilian market, such as the Grupo Simpar and its members, are a priority for us, as this is also the way we support faster and more sustainable economic recovery for Brazil and all Latin America, as established by our 2025 vision,” says Morgan Doyle, representative of the IDB Group in Brazil.

“We are very happy with this achievement. IDB Invest financing reflects the financial strength and assertiveness in our debt management strategy, as well as the continued evolution of the Group's governance practices and socio-environmental policies and the confidence of the international market and investors in our companies and the sustainable management of our businesses," says Denys Ferrez, CFO of Simpar.

From the total financing, $120 million is provided by IDB Invest (including $40 million of funds managed by the IDB Group), distributed equally among Movida, JSL, Vamos, and CS Brasil. In addition, exclusively for Movida, IDB Invest has mobilized $130 million through B-loans from four international financial entities: Bank of China Limited Panamá Branch; MUFG Bank, Ltd; Banco Santander S.A.; and Banco de Occidente (Panamá), S.A.

This project shows the commitment of IDB Invest to foster decarbonization strategies and support the logistics sector to be more efficient, cleaner and effective. It will shape one of the first and largest initiatives to increase the speed of transitioning to a lower carbon footprint in logistics and transportation in Brazil.

This deal will also contribute to the growth of sector’s supply chain, as Grupo Simpar is one of the largest buyers of heavy and light vehicles in Brazil. The use of proceeds of the facility will help make the transport supply chain more dynamic, which is also transitioning toward decreasing the carbon footprint of industry suppliers. By 2025, Simpar Group is expected to buy from more than 22,000 domestic firms. Grupo Simpar’s investments and growth will also contribute to generate jobs in this sector.

The deal for Movida includes a $100 million green loan tranche in which the company has committed to purchasing minimum amounts of electric vehicles per year until 2024. This deal is the first green loan offered by Movida, and structured and mobilized by IDB Invest. This will shape one of the first and largest initiatives to increase the speed of transition to a lower carbon footprint in this sector.

IDB Invest is providing advisory services to support Movida in the preparation of the framework for the green loan, with Vigeo Eiris providing second-party opinion. In addition, IDB Invest supported Grupo Simpar to design its long-term decarbonization strategy and provided financial resources to develop action plans to level operational units to international fire and safety standards.

This deal could contribute to four of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $14.8 billion in asset management and 376 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Grupo Simpar

SIMPAR is a holding that controls and manages seven independent companies – JSL, Movida, Vamos, CS Brasil, CS Infra, Original and Banco BBC – acting in the logistics and mobility ecosystem. SIMPAR has more than 35,000 employees aligned under the same culture and values, with a unique business model that produces sustainable results with solid ESG practices. In 2021, SIMPAR posted consolidated Gross Revenues of R$15.5 billion, being present in all Brazilian territory, five countries in South America and also in South Africa.