BNDES' all-time high Q1 disbursements strongly focused on machinery, equipment sectors

Brazil's national development bank BNDES' disbursements totaled 37.2bn reais (US$18.7bn) in 1Q13, up 52% year-on-year, and an all-time high for the company's first quarter results, local press reported. "The disbursement figure indicates a significant recovery in investments, with a strong focus on the machinery and equipment sector and on the industry as a whole. BNDES' pace of approvals is in-line with an increase in the country's level of activity, which totaled 40.7bn reais, representing a 51% increase over the year ago period," the bank said in a release. The industrial sector accounted for 36% of BNDES' total disbursements, up 109%. All industries posted positive results in the first quarter, especially machinery and equipment. The bank's automatic disbursements through BNDES' Finame line reached 16.3bn reais, a 70% increase. From Finame's total, 4.8bn reais was allocated to the industrial machinery directly linked to investments in the expansion and improvements of the sector's production capacity. Disbursements in the capital goods category rose 90% over the first quarter of 2012, especially in the acquisition of industrial boilers, machine tools and cargo handling equipment, which recorded investment growth of 596%, 135% and 115%, respectively, the release said. BNDES' first quarter disbursements for the infrastructure sector reached 9.3bn reais, down 7% year-on-year. However, the investment trend for the sector is expanding. BNDES approved 15bn reais in infrastructure investments during the period, a 73% increase. Rail and road transportation sectors were the most important contributors to this result, the bank said.