In an effort to diversify sources of financing for
infrastructures projects, Brazil has introduced a new model to
balance loans from the national development bank with funding
from debt capital markets.
The new system will require large projects
looking for a loan from the National Bank of Social and
Economic Development (BNDES) to also raise a minimum amount of
funding from locally-issued debt securities.
It’s hoped that this programme will
create more liquidity and speed up much-needed project
development, as much of the country’s existing
infrastructure is in disrepair. Brazil ranked 120 out of 144
countries in quality of infrastructure rankings conducted by
the World Economic Forum in 2014.
The programme launched in June but a cumbersome application
process has meant it will...