International and local financing attracted to Brazilian infrastructure

Private sector financing for infrastructure is beginning in Brazil, with international companies searching for the yields on offer in the sector and local companies increasingly seeing viable sources of medium-to-long term financing from the capital markets.

At the World Economic Forum in São Paulo in mid-March, CEOs of large construction companies confirmed their interest in committing money to the country’s huge infrastructure needs – and predicted a large pool of institutional investors’ capital would also be available to finance such projects.

“Once the government has a vision, and a plan in place, then investment will come [to finance Brazil’s infrastructure needs],” Joe Kaeser, Siemens’ president and chief executive officer, told the attendees of the São Paulo WEF.