BNDES seeks to mobilize US$1.36bn for infra projects

Brazilian development bank BNDES will select five investment funds and aims to mobilize 7.5bn reais (US$1.36bn) for projects and companies in the infrastructure segment.

The bank launched a public call to select the funds. It will invest 2.5bn reais directly, up to 500mn reais in each selected fund, and expects 5bn reais will come from other investors.

"BNDES has major power to mobilize capital from other parts because it has deep knowledge of the infrastructure sectors, the needs and opportunities for investments in each of the sectors and all the stakeholders involved," Letícia Queiroz de Andrade (pictured), an infrastructure-focused partner at Queiroz e Maluf law firm, told BNamericas.

"As the portfolio of infrastructure projects in the country is very large, BNDES tends to increasingly act in the structuring of financing mechanisms for projects," she added. 

BNDES said it can invest in equity funds, directly providing capital for companies or projects, or it can provide credit.

To be eligible, funds must work with institutional investors and focus on sectors with high social impact, such as sanitation and urban mobility. BNDES will also prioritize funds that adhere to ESG criteria.

Funds may apply until March 4 and the selection process is expected to be completed in the first half of this year. More information is available here, in Portuguese.

“With this initiative, BNDES is positioned as an anchor investor capable of stimulating the attraction of more private investment to the sector, which is strategic to improve the country’s productivity, the provision of services and, even more fundamentally, the quality of life of Brazilians,” BNDES’ participation, capital markets and indirect credit director, Bruno Laskowsky, said in a statement.