Itaú Unibanco, a Brazilian bank, has borrowed $400m from the International Finance Corp and a few other banks to help fund renewable energy projects in the country.

This move comes as Itaú intends to step up funding for projects that aim to cut down costs associated with energy generation, implement efficient water treatment and reduce carbon emissions, reported Reuters.

It is considered to be largest amount ever to be raised by a Latin American bank to finance initiatives to address climate change.

In the last three years, Itaú’s wholesale and investment banking unit, Itaú BBA, has been involved in the financing of 42 renewable energy projects.

Brazil, which is grappling with the worst drought in the last eight decades, is currently facing power shortage as temperatures increase.

Itaú borrowed $100m from the IFC for a period of five years and the rest of $300m came from a group of banks — Japan’s Mizuho Financial Group Inc, Bank of America Corp’s BofA Merrill Lynch unit, and Germany’s Commerzbank AG for a period of three years, the news agency reported.