NEWS

   

Latin America

BNDES AND THE CHILEAN CORFO EXPAND TECHNICAL COOPERATION

BNDES and Corporación de Fomento de la Producción (Corfo), from the Chilean government, signed on Monday, 25, a memorandum of understanding to expand technical cooperation. The MOU outlines common tools for innovation support policy-making; strengthening of micro, small and medium sized businesses; and boost to Brazilian investments in Chile and Chilean investments in Brazil.

In order to reach these goals, the memorandum aims at promoting the exchange of information between these institutions on financing facilities and other financial support tools, also disclosing business and investment opportunities among Brazilian and Chilean companies.

Information may be exchanged through joint studies, seminars, conferences, forums and other events organized by the parties.

Corfo, a Chilean self-managed organization, is intended to support and finance economic and social development projects in Chile, focused on strengthening and setting up innovative businesses engaged in the foreign market.

Brazil and Chile signed, in July 1990, a scientific, technical and technological cooperation framework agreement, which was the starting point for the cooperation among institutions and public agencies of both countries. In April 2007, the parties signed a memorandum of understanding covering science, technology and innovation.

Source: BNDES 25/08/2008

BNDES JOINS THE NEW GREEN PROTOCOL AND REITERATES ITS COMMITMENT TO ENVIRONMENTAL PRESERVATION

The President of BNDES, Luciano Coutinho, will sign the new Protocolo Verde (Green Protocol), together with the representatives of federal public banks.

The purpose of the Protocol is to define forerunner, multiplying and exemplar bank policies and practices in terms of social and environmental responsibility and in harmony with the sustainable development. The document is an update of the commitments provided in the Green Protocol signed in 1995. The participating banks recognize that may play an essential role in the guidance of private investments directed to environmental preservation and continuous improvement in the well-being of the society.

The signatories of Protocol undertake to finance the sustainable development, through credit lines and programs that promote the quality of life of the population and environmental protection.  (More)

BNDES CREATES A NEW LINE FOR ENTERPRISES TO INVEST IN THE SOCIAL AREA

The board of Banco Nacional de Desenvolvimento Econômico e Social [BNDES] approved the creation of a Enterprises' Social Investment line, which will include financings directed to the implementation, expansion and consolidation of social projects. The new line, which was launched in substitution of the Support Program for Companies' Social Investments [PAIS], aims at reducing social inequalities and presents two directions.

One of them is to support actions directed to enterprises' employees and their dependents or relatives, employees from input, material and service suppliers, or clients.

The other, in the ambit of community, will support projects involving communities in areas of enterprises' geographic influence and actions benefiting segments of population, even those not associated to business activities or in their areas of influence, but aiming at combining efforts with public programs and social policies.

The line includes support to works, acquisition of machinery, equipment, specialized technical services, information technology, capacitation and development, dissemination and application of social technologies directed to improve public policies.

Financing will always be, by means of a direct operation, independent of the amount granted, and may occur by means of social subcredit, that is, a credit bound to the financing of a certain productive project or under a specific agreement for the operation. That is, a financial support to a social program independent of the enterprises' projects.

Investments in the ambit of community will bear zero rate and the participation may reach 100% of total budget. As to investments in the ambit of enterprises, the basic interest will be 1%, without collection of a risk rate, and BNDES share level will be up to 80% of the operation value. In both cases, the maximum term is 96 months, including a grace period of up to 24 months.

Until now, the ways used by BNDES to operate a financing to enterprises' social investments were the social subcredit, which is included in the global financing agreement, in case of a social project bound to the moment of support to the productive investment, and PAIS, a program directed to public or private enterprises, bound or not to the moment of analysis of a specific productive project.

Expectations for the new program are promising and point out to a R$ 500 million portfolio. Up to now, the financings approved for enterprises' social projects amount to R$ 353 million, mostly destined to the trade sector, which accounted for 33% of total approvals, with investments of R$ 117.4 million. The farming sector invested R$ 66.6 million in actions directed to the social area, equivalent to 19% of the resources. The third segment with high volume of projects was cellulose and paper, which accounted for 16% of total financings, with R$ 56 million.

BNDES, as the main institution directed to finance the long-term development, has been associating, to its role of financing the business activity, an important contribution in the dissemination and induction of principles and procedures socially responsible in the business context.

Therefore, in parallel to supporting the expansion, strengthening and increasing productivity and the domestic competitiveness, it has been appearing a necessity and opportunity for BNDES, as main investor of funds from the Workers' Supporting Fund [FAT], to develop initiatives directed to the strengthening of enterprises' governance level. This is achieved by means of supporting an increase in the business social responsibility degree, by developing the articulation of these actions with public policies in the social field.  (More) 

FIOCCA SIGNS MEMORANDUM OF UNDERSTANDING WITH AN USA TRADE AND DEVELOPMENT AGENCY

The president of Banco Nacional de Desenvolvimento Econômico e Social [BNDES] Demian Fiocca, received this Tuesday, July 18, a visit of the general director of the United States Trade and Development Agency [USTDA], Thelma Askeuy, and her team, for signature of a memorandum of understanding between the two institutions.

The purpose of the agreement, which will be in effect for two years, is to allow BNDES and USTDA to operate jointly, aiming at expanding the trade interchange between the two countries. The memorandum establishes that both institutions should seek opportunities to operate jointly, providing credit to infrastructure projects.

Attended the meeting, besides the president, were the Planning Area superintendent, Milton Dias, and the assistant to presidency, Francesco Sirangelo. Representing USTDA were present the director Geoffrey Jackson and Anne McKinney, general manager for Latin America matters.  (More)

BNDES APPROVES A FINANCING OF US$ 279 MILLION FOR EXPORTS OF BRAZILIAN GOODS AND SERVICES TO ARGENTINA

BNDES approved a financing of US$ 279 million destined to exports of Brazilian engineering and construction goods and services for the expansion of gas pipelines in Argentina. The project provides for an expansion in the capacity of transporting natural gas through the gas pipelines integrating the systems operated by Transportadora de Gás Del Norte [TGN] and Transportadora de Gás Del Sur [TGS], which account for the primary system for gas transport (from distributors' wells). Total investment is US$ 450 million.

TGS, which has equity interests from Petrobras Energia S.A. [PESA], a Petrobras subsidiary in Argentina, transports about 60% of the gas consumed in that country, supplying directly distributors, electric generators and industries through a gas pipeline system with 7.9 thousand km extension. This transport network connects the south (Austral) and west (Neuquén) gas reserves with the main consumption centers in the country, including Buenos Aires metropolitan area, through 3 gas pipelines: San Martín and Neuba I and II. Its capacity is 74.3 million m3/day, for an installed potency of 579,090 hp.

TGN operates its own network with 5.4 thousand km of gas pipelines, connecting the reserves located in the Provinces of Salta and Neuquén until San Jerónimo Compressor Plant, in the Province of Santa Fé. Comprised of two main gas pipeline systems, North Gas Pipeline and Center-West Gas Pipeline have 17 compressor plants and capacity of 56.4 million m3/day, for an installed potency of 300,170 hp.

The Brazilian goods and services financed by BNDES are destined to investments performed by the company Albanesi S.A., which main activities are the execution of infrastructure works for water and natural gas networks and the installation of branch gas pipelines. Albanesi is one of the leading natural gas traders in Argentina, accounting for 12% of total gas consumed, 18% of the market for large customers and 4.5% of transports, and accounting for 8 million m³/day (20% of production in Austral basin and 7% of production in Neuquén).

The Brazilian exports financed by BNDES comprise measurement equipment, steel tubes and sheets, among other engineering goods and services, which will allow to increase the system transport capacity by up to 4.9 million m³/day (25% of the expansion plan), upon the installation of loops, extensions of ducts in parallel to the main gas pipeline.

This operation was structured in sequence to the financings approved by BNDES in February and March of last year, in a total of US$ 213 million, which allowed a transport capacity expansion by 4.7 million m³/day, guaranteeing gas supply to the benefited regions, still in 2005.

As in the operations performed in 2005, the new BNDES financing to Brazilian exports to TGN and TGS projects was approved in the ambit of the post-shipment line (destined to the external trading of goods and services), in the supplier credit modality (refinancing to exporters) and will be made in the ambit of the Convention for Mutual Payments and Receivables [CCR], of the Latin American Integration Association [LAIA].

The use of CCR, an instrument allowing the compensation of payments arising from exports and imports between countries in the region, confirms its qualification as an essential mechanism for increasing the trade and implementing infrastructure projects in Latin America.

The project will further count on financings from Argentina's public and private financial institutions, besides local investors. The financial conditions approved by BNDES include the same terms for operations approved in 2005, with a total payment term up to ten years and the contracting of export credit insurance.

The Argentine government plan provides for an expansion of up to 20 million of m3/day in gas transport capacity, throughout the period 2006/2008. The investments should be performed by the producing and trading enterprises, in addition to distributors and large consumers of natural gas in Argentina, which have participated in the competition for acquisition of transport firm capacity.  (More)

BNDES INTRODUCES A TECHNOLOGICAL FUND FOR INVESTMENTS IN PROMISING AREAS

Funtec will have R$ 153 million as equity and funds will come from BNDES profits

Banco Nacional de Desenvolvimento Econômico e Social [BNDES] approved the creation of a Technological Fund [Funtec], with non-reimbursable funds, destined to invest in areas considered as a technological frontier. Funtec will support projects in the following areas:

• renewable energy from biomass, mainly ethanol;

• software, semiconductors and biotechnological solutions directed to the designing of problems associated to Brazilian farming development; and

• drugs and inputs for neglected illnesses and pharmaceutical products obtained through advanced Funtec's main objective is to seek solutions for large technological problems in order to potentiate strategic fronts and remove obstacles to the Brazilian economic and social development. Holding R$ 153 million as equity, the new fund will have as beneficiaries the technological institutions and those supporting technological development, with the participation of enterprises. The three above described lines should use 70% of Funtec's available funds, which will come from BNDES profits.

Therefore, BNDES completed the last tripod vertex of its innovation supporting strategy. The two other operating fronts are the financing to enterprises presenting projects with processes considered innovative, in which Bndespar performs capital funding, and the two new lines, recently created, one for Research, Development and Innovation, bearing a fixed rate of 6% and zero basic spread, and another Innovation - Production, bearing Long-Term Interest Rate [TJLP] plus a spread up to 1.8%, which are included in the BNDES New Operating Policies. The lines differ from Funtec for financing the projects in any industrial, services or farming sector, while the new Fund will operate in specific areas.

Funtec supported programs will aim at covering gaps and accelerating the search of solutions to large problems already detected and recognized by research institutes and economic agents. In addition, the concentration of efforts with well-defined focus will allow BNDES to have a remarkable presence in areas or matters in which the Brazilian enterprises may play an important role or even lead in a global level.

Lastly, the solutions sought by Funtec should join efforts from Research Institutes and enterprises. BNDES financial support will be provided to nonprofit institutions directed to research and innovation. The supported projects should consider an effective introduction of market innovations. Presently, BNDES carries a portfolio of long-term projects, which may receive funds from Funtec, in a total amount of R$ 286 million. (More)

THE BUSINESS DEVELOPMENT BANK OF CANADA

MARKET CONDITIONS LEAD TO INCREASED DEMAND FOR BDC'S BUSINESS FINANCING SOLUTIONS

The Business Development Bank of Canada (BDC) made public its annual report which contains its financial statements for the year ended March 31, 2008. The results revealed a growth of $865 million or 9% in its loan and investment portfolio to reach a total portfolio of $10.6 billion. This enabled BDC to generate a net income of $84.6 million for the year. In fiscal 2008, dividends totalling $21.5 million were declared to BDC's shareholder, the Government of Canada. Since 1997, BDC has declared $156.7 million in dividends to its sole shareholder.

"This year's record increase of our loan and investment portfolio shows that BDC plays a key role in supporting entrepreneurs, even when uncertainty in the marketplace reduces the credit supply for Canadian business owners," said Jean-René Halde, President and Chief Executive Officer. "BDC remained committed to helping entrepreneurs thrive by providing them with highly tailored financing solutions, by sharing their willingness to take risk, and by being a partner they can count on long-

(More)

BDC CREATES NEW ABORIGINAL BUSINESS DEVELOPMENT FUND IN PARTNERSHIP WITH NUU-CHAH-NULTH ECONOMIC DEVELOPMENT CORPORATION

The Business Development Bank of Canada (BDC) announced today a partnership agreement with the Nuu-chah-nulth Economic Development Corporation (NEDC) to create a new Aboriginal Business Development Fund (ABDF) to benefit entrepreneurs in the Nuu-chah-nulth trading area. BDC will invest $250,000 in capital for the micro credit loan fund and qualified entrepreneurs will be able to obtain business loans of up to $20,000.

"BDC is committed to helping entrepreneurs and start-ups across the country," stated Wellington Holbrook, Senior Vice-President, Operations, Prairies and West. "This new initiative, in partnership with the Nuu-chah-nulth Economic Development Corporation, allows us to have a direct impact on business creation in the region."

The Nuu-chah-nulth Economic Development Corporation will identify entrepreneurs who are potential loan candidates. Through the corporation's established Youth Entrepreneurship program, candidates will be offered appropriate business training including mentoring and education on such topics as human resources management, financial planning, marketing and problem resolution. The emphasis will be placed on the candidate's management capacity, business feasibility, and commitment as opposed to equity and security.  (More)

MARKET CONDITIONS LEAD TO INCREASED DEMAND FOR BDC'S BUSINESS FINANCING SOLUTIONS

CAF: SUPPORT FOR INSTITUTIONAL STRENGTHENING OF STATE BANK OF ECUADOR

CAF and BEDE sign a technical cooperation agreement to strengthen the effectiveness of institution’s public investments through up-to-date technical information and instruments.

 CAF representative in Ecuador Luis Paláu-Rivas and general manager of Banco del Estado (BEDE), Diego Aulestia, signed a non-reimbursable technical cooperation agreement for the bank’s institutional strengthening. The objective is to develop and update methodologies, knowledge and technology aimed at making the institution’s management more responsive and efficient.

BEDE does not currently have the up-to-date technical and financial information on municipal public services needed to optimize its actions with local governments. BEDE grants loans for investments based on the best utilization of the scarce resources available in relation to the enormous need for public works, which requires precise identification, prioritization and optimization of potential projects.

The operation covers modernization of two important systems which are sources of internal and external information:

The Municipal Information System (SIM) which provides financial-technical and administrative information on municipal services; and updating the Shadow Price Ratio (SPR) which facilitates the economic evaluation of the projects.

With the start of the program, SIM will provide information on municipal public services: potable water, sewerage, solid waste, roads, land terminals, and others. The SPR variables will be updated to transform the market prices of the main inputs used in execution of projects. Execution time for the project is 12 months. (More)

BRAZIL TO JOIN CARIBBEAN DEVELOPMENT BANK

Brazil is to become the newest member of the Caribbean Development Bank (CDB).  Approval of Brazil’s application for membership in CDB was one of the decisions taken at the Thirty-Eighth Annual Meeting of the Bank’s Board of Governors, which took place at the World Trade and Convention Centre in Halifax, Nova Scotia, Canada, from May 28 to 29, 2008.

With Brazil’s accession to membership in the Bank, this brings the total number of CDB member countries to 27, and the number of Latin American member countries to four.  The others are Colombia, Mexico and Venezuela.

The Annual Meeting was chaired by Canada’s Minister for International Cooperation, the Honourable Beverley J. Oda.  In his Annual Statement to the Board of Governors, CDB President, Dr. Compton Bourne, addressed the topic of “Enhancing Trade Capacity and Trade Competitiveness”.  He told the Governors that the imminent signing of the Economic Partnership Agreement (EPA) between CARIFORUM countries and the European Union is a definitive signal of a transition to a new era in trade and economic cooperation between the Bank’s borrowing member countries and their international partners.  (More)