BNDES offers R$13bn to accelerate recovery

Maria Silvia Bastos Marques

The Brazilian Development Bank (BNDES) will take an unprecedented role as provider of working capital to Brazilian companies. Through December 31, the bank will make R$13 billion available in its BNDES Progeren line, to bolster the capacity of creating jobs and income, of which R$5 billion will be offered directly, something that so far had never occurred in a broad way, and R$8 billion through financial agents.

The offering of working capital without the intermediation of agents is part of the new operational policies BNDES announced Thursday in the biggest revamp of the bank’s financing terms in nearly a decade. The last change was made nine years ago.

Criatividade fiscal sem fim

Governadores e prefeitos vão deixar conta para sucessores

Em nome de uma melhora no perfil de suas dívidas, governadores e prefeitos estão autorizados a buscar empréstimos junto a bancos privados e a deixar parte da conta para ser paga por seus sucessores, que também terão que enfrentar os altos e baixos do dólar por dez anos.

A permissão para essa nova operação foi dada pessoalmente pelo secretário do Tesouro Nacional, Arno Augustin, contrariando recomendação da área técnica do órgão descrita em um parágrafo do parecer 1.605/2012 da Procuradoria-Geral da Fazenda Nacional (PGFN). Os técnicos discordaram da inclusão de prazos de carência nas operações de refinanciamento da dívida estadual por meio de empréstimos dolarizados, que foram realizadas em 2012.

BNDES Sells 750 Million Euros of 7-Year Notes to Yield 4.243%

Sept. 9 (Bloomberg) -- Brazil’s state development bank, known as BNDES, sold 750 million euros of seven-year bonds, according to a person familiar with the offering.

The notes priced to yield 4.243 percent, or 200 basis points over the benchmark mid-swap rate,

Brazil Boosts BNDES Lending Capacity by $20.7 Billion

April 30 (Bloomberg) -- Brazil’s state development bank will have an additional 36 billion reais ($20.7 billion) to lend under a plan announced by the Treasury today.
Brazil’s Treasury will exchange 1.3 billion reais of shares it owns in Centrais Eletricas Brasileiras SA, a state-controlled power utility, for shares in state-controlled Banco do Brasil SA owned by development bank known as BNDES, said Charles Guedes, a Treasury official. The Treasury will also transfer to the bank a credit of 2.7 billion reais owed to it by Eletrobras, as Latin America’s biggest utility is known.
The two measures will boost capital levels at the development bank, giving it more room to make loans. BNDES can include the Eletrobras shares as part of its capital, while rules didn’t allow shares in Banco do Brasil to be counted as capital.

Banco do Brasil Sells $1 Billion of Bonds Overseas (Update2) - Bloomberg.com

Banco do Brasil Sells $1 Billion of Bonds Overseas
Jan. 15 (Bloomberg) -- Banco do Brasil SA, Latin America’s biggest bank, sold $1 billion of bonds in its second international dollar debt sale in three months.

The Brasilia-based bank issued $500 million of 10-year dollar bonds to yield about 2.38 percentage points above U.S. Treasuries and $500 million of five-year bonds to yield 2.2 percentage points more than Treasuries, according to Bloomberg data.

Banco do Brasil returned to the market after demand topped $14 billion for a bond sale in October, Chief Financial Officer Ivan de Souza Monteiro said in an interview last month. Today’s sale follows overseas debt issues by Banco Votorantim SA, Banco Industrial e Comercial SA and state development bank BNDES this month, part of an effort to boost lending in Latin America’s biggest economy.

“Brazilian banks have been very aggressive lending money in the local market,” said RBC Capital Markets analyst Eduardo Suarez, who is based in Toronto. “It’s a good time to get long- term financing to maintain their lending activity.”

Loan growth for Banco do Brasil and the banking industry will exceed 20 percent this year as the rebound in the country’s economy prompts companies and consumers to increase borrowing, Monteiro said.

The 8.5 percent perpetual bonds the bank sold in October yield about 3.83 percentage points over U.S. Treasuries due 2019, compared with an issue spread of 5.19 percentage points, according to data compiled by Bloomberg.

Banco do Brasil’s sale today is part of a push by emerging- market companies and governments to lock in lower borrowing costs before central banks begin raising interest rates.

Deutsche Bank AG, JPMorgan Chase & Co., BB Securities and Banco Votorantim arranged today’s transaction.

To contact the reporters on this story: Lester Pimentel at lpimentel1@bloomberg.net; Veronica Navarro Espinosa in New York at vespinosa@bloomberg.net
Last Updated: January 15, 2010 14:59 EST"

Banco do Brasil in Talks to Arrange 9 Billion Reais Dam Loan - Bloomberg.com

Banco do Brasil in Talks to Arrange 9 Billion Reais Dam Loan
Jan. 13 (Bloomberg) -- Banco do Brasil SA, Latin America’s largest lender by assets, has begun talks with banks and companies to arrange a loan of about 9 billion reais ($5.1 billion) to help finance construction of an Amazon dam project.

The bank is negotiating with five to six banks and with companies that may bid to build the Belo Monte hydroelectric dam, Sandro Marcondes, Banco do Brasil’s commercial director, said in a telephone interview from Brasilia. The companies include GDF Suez, Camargo Correa SA, Odebrecht SA, Cia. Energetica de Minas Energia, Neoenergia and Centrais Eletricas Brasileiras SA units Chesf and Eletronorte, he said.

“We are working with companies and Brazil’s state development bank to identify risks associated with the project,” Marcondes said.

BNDES, as the country’s state development bank is known, may also provide 12 billion reais in financing for the project, Marcondes said. Banco do Brasil estimates the 11,000-meagawatt hydroelectric dam may cost about 26 billion reais. The bank doesn’t have a final estimate for the project as Brazilian government hasn’t set the auction rules.

The state development bank will announce the terms of financing once the government sets the auction date, said a BNDES spokesman who declined be identified in accordance with the bank’s policy.

Dam Projects

Brazil will set the auction date for the Belo Monte dam after environmental agency Ibama grants a permit, Energy Minister Edison Lobao said in December. Ibama hasn’t said set a date to announce the license, said spokeswoman who declined to be indentified in accordance with agency policy.

Last year, BNDES lent 6.1 billion reais to a group of companies led by Odebrecht to build Jirau and 7.2 billion reais to GDF Suez and its partners for the construction of the Santo Antonio dam.

Odebrecht is considering bidding in the Belo Monte auction, a company’s spokeswoman said. Spokespeople at Eletrobras, as the Chesf and Eletronorte controlling shareholder is known, Cia. Energetica de Minas Energia, GDF Suez and Camargo Correa didn’t return calls seeking comment from Bloomberg News. A Neoenergia spokeswoman declined to comment.

To contact the reporter on this story: Francisco Marcelino in Sao Paulo at mdeoliveira@bloomberg.net
Last Updated: January 12, 2010 21:00 EST