More deals, new structures

Author: | Published: 23 Dec 2011

Brazil has grown into one of the one of the most investment-friendly and preferred jurisdictions, even compared to other Bric members. Foreign direct investment is estimated at $70 billion in 2011 and at least $50 billion in 2012.

And according to publicly available, information approximately $140 billion in investments is required in the various infrastructure sectors over the next three to four years.

In order to satisfy these infrastructure-related investment needs, the diversification of the funding matrix is essential. In this regard, the Brazilian National Development Bank (BNDES) has played the most important role by far in long-term low interest rate funding to local projects (for reference purposes, disbursements in 2011 are expected to be around $80 billion).

Despite BNDES’ deep pockets and the liquidity of other Brazilian commercial banks and pension funds attracted by infrastructure projects, other foreign sources of financing are of the utmost importance in the current...