BNDES seeking private-sector help to take a step back
Brazilian Development Bank wants to finance more projects with a lower level of disbursements; local capital markets seen as better bet than banks to help BNDES step back.
Eliane Lustosa, BNDES director of capital markets, is working with Brazil’s banking and pension fund associations – Anbima and Abrapp respectively – to try to encourage private-sector financing of Brazilian infrastructure.
In a wide-ranging interview with Euromoney magazine, to be published in the February issue, Lustosa says the development bank – which is responsible for 15% of total lending to the private sector and has a balance sheet that is similar in size to the World Bank – is trying to lower its financial disbursements while supporting a larger number of projects and companies.
Squaring the circle of doing more with less means bringing in private-sector financing – with both the banking and institutional investor segments having complained about being crowded out in recent years.
Lustosa is now targeting the creation of new debenture instruments that would enable pension funds, and other institutional investors, to finance long-term projects.
Banks, too, will be encouraged by the government changing the interest rate charged by BNDES to the private sector.