BRASILIA, Sept 1 (Reuters) - Brazil's state development

bank BNDES on Monday launched a public call for climate-focused

investment funds, offering 5 billion reais in seed capital to

spur a total of 18 billion reais ($3.32 billion) in investments.

Reuters first reported the plan in July.

WHY IT'S IMPORTANT

The program marks the largest public call for funds in

BNDES's history, underscoring its role as anchor investor in

Brazil's green economy transition as President Luiz Inacio Lula

da Silva seeks to raise the country's profile on the global

sustainability agenda.

BY THE NUMBERS

BNDES' 5 billion reais injection is expected to draw 13

billion reais in private capital. Up to five equity funds will

receive as much as 4 billion reais, while two credit funds will

share 1 billion. BNDES's stake will be capped at 25% in equity

funds and 50% in credit funds.

CONTEXT

The funds will back projects ranging from industrial

decarbonization and energy transition to green agriculture,

ecosystem restoration and forest conservation. The move

dovetails with Lula's environmental agenda and broader efforts

to deepen Brazil's capital markets.

WHAT'S NEXT

Proposals will be accepted until October 20, with results

due by January 2026. The call is open to foreign investors, with

Reuters having previously reported that TPG, Brookfield

and BlackRock ( BLK ) were among firms approached during

market soundings.

($1 = 5.4212 reais)