BNDES breaks record with infrastructure operations – 12/24/2023 – Panel SA

The BNDES will close 2023 with a record of approvals and disbursements since 1995. Approvals for infrastructure sectors are expected to total R$37.5 billion and disbursements, R$23.9 billion.

“The new PAC, launched by President Lula, opened space for the beginning of a new investment cycle to boost development,” said the president of BNDES, Aloizio Mercadante. “More than 80% of disbursements were allocated to new investments.”

Mercadante says that there was a 20% jump in investments in infrastructure (transport, logistics, mobility and sanitation), reaching R$213 billion, a number close to the historic high of R$227 billion in 2014.

This occurs at a time when there was a 21% drop in total investment in the basic industry, according to a survey by Abdid, the association that represents the sector.

Debentures

A good part of these operations was structured in the project finance modality (in which the project is the guarantee itself).

The improvement of the credit and guarantee policy, which increased operational flexibility and risk appetite, allowed BNDES to start taking on more project risks, making it possible to support projects that require high volumes of investment.

“It is also worth highlighting that around half of the number of approved operations had support via debentures”, says Mercadante.

“After the Americanas frauds, there was a strong defensive behavior by private banks and, simultaneously, a drastic reduction in issuances of capital markets instruments. In this context, BNDES participated in relevant issuances, playing its role as a development bank and contributing to make investments viable”, says Mercadante

Among the debenture operations approved by BNDES this year, two of the largest operations in history with infrastructure debentures stand out, both in the sanitation sector: the offers from Iguá Rio – issue of R$ 3.8 billion, of which BNDES subscribed R$ 1.8 billion – and from Águas do Rio – issue of R$ 5.5 billion, with subscription of R$ 1.9 billion by BNDES.

Public transportation

In the urban mobility sector, R$ 15 billion were approved in total, with emphasis on support for the Mobility Investment Plan of the State of SP (project included in the New PAC), of R$ 10 billion, and for the Electrification operation of Fleet of the Municipality of São Paulo, of R$ 2.5 billion, the first Finame Direto operation for public entities.

In highways, the Viasul operation stands out, worth R$ 1.45 billion (consisting of R$ 900 million in debentures and R$ 550 million in Finem, to support the investments of the Concessionária das Rodovias Integradas do Sul SA, relating to stretches of BR-101/290/386/448/RS).

Another relevant operation involved the subscription of R$750 million in Rumo SA debentures, to support investments in Malha Paulista. The issuance totaled R$1.5 billion.

With Diego Felix

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