SAO PAULO, May 19 (Reuters) - Brazilian reforestation

startup re.green has obtained 80 million reais ($14.13 million)

in financing from state development bank BNDES, it said on

Monday, in a deal that also involved lender Bradesco

as a financial intermediary.

The deal is similar to a 160 million real deal announced by

Mombak last month, which marked the first reforestation project

backed by Brazil's 10 billion real "New Climate Fund" unveiled

in 2023 to finance climate-related projects.

The deal comes as Brazil's nascent carbon market quickly

gains ground and attracts interest from private investors and

lenders such as Bradesco and Santander, which acted as

an intermediary for Mombak.

Some restoration startups have complained of difficulty

getting loans to reduce capital costs and finance operations, as

many investors still see it as risky.

"We have a mantra that is de-risking, which is how we will,

over time, reduce uncertainty and bring more confidence to our

market," re.green Chief Executive Thiago Picolo said in an

interview.

"In our case, we now have the first disbursement from BNDES,

also involving Bradesco for the first time. So it is a series of

steps that reduce uncertainty, increase confidence, and

facilitate fundraising."

Re.green buys degraded land from farmers and ranchers or

partners with them to replant native species in the Amazon

rainforest and in Brazil's coastal Atlantic rainforest.

By turning degraded land into forests, the company is

working to generate "carbon credits" that companies can buy to

offset their greenhouse gas emissions.

The startup has a deal with Microsoft ( MSFT ) to restore

forests and is backed by Brazilian billionaire Joao Moreira

Salles and asset managers such as Dynamo and Gavea, founded by

former Brazilian central bank governor Arminio Fraga.

The BNDES financing "shows that we have a powerful tool to

enable investments in the recovery of degraded areas in the

country," said the state development bank's head, Aloizio

Mercadante.

"It confirms the great power of this fund made available by

President Luiz Inacio Lula da Silva for BNDES to decisively

fight the effects of climate change in our country," he added.

The bank's program is part of Brazil's 2015 commitment to

restoring 12 million hectares (29.7 million acres) of its native

forests by 2030, which Lula reaffirmed last year.

($1 = 5.6632 reais)