The Brazilian Development Ban

HOW TO SUPPORT EXPORTERS IN AN

EMERGING COUNTRY

THE ROLE OF BNDES-exim

Renato Sucupira - Head of Export Area

Presentation to Brazil-Group (USA)

November, 2002
AGENDA

✔ Brazilian Development Bank at a glance

✔ Brazilian Export Context

The main
challenges for Brazilian exporters

✔ BNDES-exim´s focus
How to support
exporters in an emerging country

✔ Developing guarantee´s structures

BNDES at a glance

BNDES Financial Highlights (as of Dec. 31.2000)

Total Assets US$ 51,5 billion

Shareholder´s Equity US$ 6,1 billion

Disbursements US$ 13,1 billion

Av. Return on Equity (97-

7,6% p.a.
00)
 Main Indicators
BNDES and other Latin American development
banks
BNDES IDB CAF
(12/31/00) (12/31/00) (12/31/00)

Total Assets 51,466 69,944 5,844

Equity 6,051 12,444 1,629
Profit 474 846 107
Disbursements 12,586 6,200 1,820
Employees 1,762 1,719 ~250

IDB: Inter-American Development Bank

CAF: Corporación Andina de Fomento
BNDES´ PRIORITIES

 Promotion of Brazilian exports;

 Financing of new infrastructure
investment: energy, water supply, ports,
telecom and transportation;
 Privatizatio
n;
 Financing of small and medium-sized
enterprises;
 Reduction of social and regional
imbalances;
 Strengthening of capital markets;

ALIGNED WITH BRAZILIAN STRATEGIC INTEREST

BNDES: Annual Disbursements

US$ million
17,580 18,319

1,118 1,97
12,586
10,986 10,877
182
186
1,104
16,462 16,349
12,404
9,882 10,691

1997 1998 1999 2000 2001

Financings and Equity Investments Secondary Market Transactions

BRAZILIAN EXPORTERS´MAIN CHALLENGES

✔SHORTAGE OF LONG-TERM
FINANCING AND
BRAZILIAN GUARANTEES
ECONOMIC ✔INCOMPLETE CAPITAL
ENVIRONMENT MARKET
✔HIGH INTERNAL INTEREST
RATES
✔ COUNTRY RISK
 BNDES-exim:

Supporting exporters in
an emerging country
 BNDES-exim: Objectives

To provide adequate financing schemes for the

Brazilian exporters helping finance overseas sales
of the manufactured goods and services, through:

Competitive export credit conditions:

longer terms and tailor-made transactions

exible, innovative and customer-driven structured financi

 BNDES-exim´s Products

PRE-EXPORT
nance the production (working capital) of export goods

POST-EXPORT
ance the commercialization of export goods or services

OVERSEAS INVESTMENT SUPPORT

nce private investments overseas linked to the increase of e
BNDES-exim: Annual Disbursements
US$ million

3.083
2.603
2.525
2.065 2.100

1.185

388

1996 1997 1998 1999 2000 2001 2002 *

*: Jan-Aug´02
 What we offer ?
General Credit
Condition
 Overall Cost: Libor + spread

 BNDES-exim’s Participation: up to 100%

 Terms:
Pre-Export: up to 30 months
Post-Export: up to 12 years

 Guarantees: negotiated case-by-case

Acceptable
Guarantees

 Multilateral Agencies / Creditworthy Foreign

*
Banks
 Creditworthy Brazilian Banks
 Export Credit Insurance (SBCE)
 Straight Loan to the Exporter / Importer
 Others
(1) more than 100 financial institutions
accredited abroad
Structuring Guarantee Schemes
(1/4)
1. PROJECT FINANCING
STRUCTURES
FUNDING SOURCES

BNDES-exim US$ 760 millions

Commercial
Banks US$ 500 millions

Case: Japanese
Tadings US$ 100 millions
PETROBRAS
Barracuda/Carati JBIC US$ 1,140 millions

nga Petrobras US$ 426 millions

US$ 2,926 millions

Structuring Guarantee Schemes
(2/4)
2. PARTICIPATE WITH OTHER
ECA´S IN MULTISOURCING
AGREEMENTS

Case: Three Gorges Hydroelectric Power

Plant/China
In China, the Three Gorges Hydroelectric Power Plant Project
awarded to four Brazilian companies, among others participating
in international consortiums, supplying turbines and generators
with BNDES-exim financing of approximately US$ 150 million.
Structuring Guarantee Schemes
(3/4)
3. MASTER AGREEMENTS

Technical
Cooperation
Agreements
celebrated with
Multilateral and
Credit Institutions
Structuring Guarantee Schemes
(4/4)

4. ASSET-BASED FINANCING

Case: Embraer´s exports support

BNDES-exim has signed financing contracts with several
importers (from USA, England, France, China, Switzerland and
Portugal) for the acquisition of over 450 aircraft, surpassing US$
10,0 billion.
Overseas Investment Support
(1/4)
MAIN PURPOSE

Provide financial support to the Brazilian

companies to invest abroad linked with the
increase of exports.

ELIGIBLE COMPANIES

 Brazilian companies with Brazilian share in equity

larger than 50%.
Overseas Investment Support
(2/4)
ELIGIBLE ITENS

 Brazilian itens exported: Goods and services

package exported with minimum national
content of 60%.

 Local investment in assets : Involves the

construction or acquisition of industrial plants
abroad;

 Working Capital Needs: Defined in a case-by-

Overseas Investment Support
(3/4)
HOW TO SUPPORT ?

 BNDES-exim: Financing Brazilian goods and

services to be exported;

 FINEM: Financing investment in assets abroad;

 CAPITAL MARKETS TOOLS: Financing capitalization

of companies in mergers or acquisitions.
Overseas Investment Support
(4/4)
FINANCIAL COSTS

 Brazilian Exports: based on LIBOR;

 Others: based on BNDES´ basket of

currencies.

TERMS AND GUARANTEES

 To be negotiated case by case,

Electronic presentation prepared by the Staff of BNDES-exim

www.bndes.gov.br
exim@bndes.gov.br