BNDES studies rules to attract foreign investors

Today (8th), the CEO of the National Bank for Social and Economic Development (Banco Nacional de Desenvolvimento Econômico e Social – BNDES), Luciano Coutinho, said that long term foreign investments, from debentures, are the participation mainline from the private sector on priority projects and works for the country. According to him, the bank in studying actions to make the scenario safer and more attractive to international investors.

“We make efforts to strength and create safer conditions for foreign investors, especially the traditional ones that are not very likely to take many risks”, ensured Coutinho. He also mentioned that BNDES has already sponsored more than 400 infrastructure projects in Brazil “without problems”. “We are analyzing the clauses that protect foreign investors and we have done an active dialogue with interested investors abroad. Before banking credit will be debentures”, bet Coutinho.

Debentures work as titles issued by the private sector. The paper represents debts of companies that are committed to pay off with defined interest rates and expiration date, and with the money from the sale, they manage to finance works and projects. The government has created several incentives in order to attract the private sector interest. One of those was Income Tax exemption for companies that join in, but the idea wasn’t a success.

During a public hearing of the Economic Matters Commission (Comissão de Assuntos Econômicos – CAE), at the Federal Senate, Coutinho ensured that BNDES is ready to offer the rates and conditions that were announced to speed up the logistics investment program in the country. According to him, private sector participation is essential in order to projects gain the expected dimension and outcomes.

“Our expectation is that highways, ports and airports auctions have a very tight dispute, the railroad section auctions attract many investors. From our part, we offer long term financing and we will strengthen private investors’ capital structure”, added Coutinho, highlighting that the bank has kept this double agency directed to the sector.

Coutinho explained that international BNDES, located in London, has that function among its purposes. According to him, the expectation is that this unit is used to raise foreign funds with lower rates, manage interest assets of the country and work as a dialogue source to attract investment, especially to the country’s logistic area. “These purposes more than justify that the bank have an international window”, he mentioned.