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China Co-Financing Fund for Latin America and the Caribbean provides $10 million loan to Movida for decarbonization projects
| Funder | People's Bank of China (PBC) |
|---|---|
| Recipient Organization | Movida Participações S.A. (Movida) |
| Country | Brazil |
| Start Date | Dec 23, 2021 |
| End Date | Apr 21, 2029 |
| Duration | 2,676 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 110347 |
Grant Description
China Co-Financing Fund for Latin America and the Caribbean contributes to USD 30 million syndicated loan to Brazilian company Movida for decarbonization projects in 2021 On December 23, 2021, a $250 million financing package was signed between IDB Invest -- the private sector institution of the Inter-American Development Bank (IDB) Group, formerly the Inter-American Investment Corporation (IIC) -- and four subsidiaries of Brazilian logistics and infrastructure conglomerate Simpar S.A: Movida Participações S.A., JSL S.A., Vamos Locação S.A., and CS Brasil Holding e Locação S.A. (CS Brasil).
This financing package included an A loan (credit line) worth $120 million, for which $40 million was mobilized from the China Co-Financing Fund for Latin America and the Caribbean (CHC), a fund established by the People's Bank of China (PBOC) and managed by IDB Invest.
A separate loan instrument was signed with each of Movida, JSL, Vamos, and CS Brasil, with $10 million from the CHC provided to each. These loans are captured via Record ID#110347, #110348, #110349, and #110350. IDB Invest also contributed $80 million of its own funds to the A loan. The A loan carried a 10-year maturity period and a 2.5-year drawdown period.
As of June 2025, Movida, Vamos, and CS Brasil had all drawn down on the full $10 million committed, while JSL had not drawn down on the facility at all.
The financing package also included a B loan (credit line) worth $130 million to which Bank of China (Panama Branch), MUFG Bank Ltd, Banco Santander S.A., and Banco de Occidente (Panama) each contributed $32.5 million. The B loan, coordinated by IDB Invest, was exclusively for Movida, a rental car company.
It included a $100 million "green loan" tranche, for which Movida committed to purchasing minimum amounts of electric vehicles per year until 2024. The B loan achieved financial close on March 29, 2022.
The green loan tranche carried a maturity of 5-years (final maturity in 2026) and the remainder of the loan carried a maturity of 7-years (final maturity in 2028). The loan also carried a SOFR-based interest rate. The contribution to the B loan by Bank of China (Panama) is captured via Record ID#109947.
The loan proceeds were to be used to support decarbonization investments across Movida, JSL, Vamos, and CS Brasil.
These investments included the procurement of electric and hybrid vehicles for Movida's rental fleet, the installation of charging infrastructure, and ESG-aligned vehicle fleet modernization. Movida began drawing down on its credit lines in 2022.
Staff Comments
- The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see Record ID#86526.
- Movida disclosed in its Annual Financial Statements for 2022 that its two credit lines (i.e. the borrowing under their portion of the A loan as well as the two tranches of the B loan, worth $160 million in total) carried interest rates of SOFR plus a margin of 2.97%, 3.29%, and 3.46%. It is unknown which margins applied to which credit line. As such, an average of the three margins (3.24%) has been taken and applied for the time being. However, this issue warrants further investigation.
- The IDB Invest project number for financing to Movida is 13553-01, for financing to CSB is 13756-01, for financing to Vamos is 13755-01, and for financing to JSL is 13009-01.
- The Inter-American Development Bank's Operation Number for the China Co-Financing Fund contribution to the loan to Movida is 5417/CH-BR, to CSB is 5436/CH-BR, to Vamos is 5425/CH-BR, and to JSL is 5426/CH-BR. Insofar as separate Inter-American Development Bank loan operation numbers are provided for all four recipients of CHC loans, it is assumed that four separate loan instruments were signed -- one with each recipient.
- Norton Rose Fulbright served as legal advisor to Simpar and its subsidiaries for this transaction.
Sources & References
- Simpar Additional Facility 2022 Transaction IJGlobal
- IDB Invest Provides $250 Million Financing to Grupo Simpar to Promote Decarbonization in Brazil’s Transport Sector.
- Simpar wins USD 250 million credit line from IDB
- MOVIDA to receive USD 160 million from IDB Invest credit line
- Simpar wins USD 250 million credit line from IDB
- Movida
- Greening a Mobility Giant
- Cs Brasil
- Vamos
- JSL
- Norton Rose Fulbright advises SIMPAR and its subsidiaries in US$250M ESG-related financing
- IDB Invest approves USD 30 million credit line for JSL
- Movida Participações S.A. Demonstrações financeiras individuais e consolidadas em 31 de dezembro de 2023 e relatório do auditor independente
- DEMONSTRAÇÕES FINANCEIRAS 2022, [Inter-American Development Bank Project Information database entries for Movida
- Vamos
- JSL, and CS Brazil. Information retrieved on August 11, 2025 from https://www.iadb.org/en/projects/project-information] Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Movida Participações S.A. (Movida)
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