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Founded in June 20, 1952
100% owned by the federal government
EXIM Brasil: Brazilian Export Bank
Key instrument for implementing industrial and infrastructure policies
BNDES: main development BNDES: main development
agency in Latin Americaagency in Latin America
BNDES: main development BNDES: main development
agency in Latin Americaagency in Latin America
Dominant role as equity investor through BNDESPar
Main provider of long-term financing in Brazil
Source: BNDES
US$ billion US$ billion BNDES BNDES (Dec/09)(Dec/09)
IBRD IBRD (Jun/09*)(Jun/09*)
IDB IDB (Dec/09)(Dec/09)
CAF CAF (Dec/09)(Dec/09)
Total Assets 222.05 275.42 84.06 15.89
Loan Disbursements 78.91 18.56 11.42 5.29
IBRD = The International Bank for Reconstruction and Development (World Bank)
(*) Unlike other institutions, 12-month fiscal years ends June 30th
IDB = Inter-American Development Bank
CAF = Corporación Andina de Fomento
Infrastructure -
1950 1960 1970 1980 1990 Today
Innovation -Energy - Heavy Industry - Imports Energy –
The BNDES has supported all kinds of companies and The BNDES has supported all kinds of companies and projects projects (investments, working capital, vendor financing, exports).(investments, working capital, vendor financing, exports).
The BNDES has supported all kinds of companies and The BNDES has supported all kinds of companies and projects projects (investments, working capital, vendor financing, exports).(investments, working capital, vendor financing, exports).
Su
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Su
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Bra
zili
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B
razi
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n
Co
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Co
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Infrastructure -
Exports
Privatization -
Urban and Social
Development
Innovation -
Infrastructure -
Productive
Capacity - Exports -
Social Inclusion
Energy -
Transport -
Steel
Heavy Industry -
Consumer Goods -
SME - Technologic
Development
Imports
Substitution
Basic Inputs -
Capital Goods
Energy –
Agribusiness -
Competitive
Integration
The BNDES has the funds and knowledge to deal with largeThe BNDES has the funds and knowledge to deal with large--scale projects !!!!scale projects !!!!
Su
pp
ort
S
up
po
rt
Fore
ign
Fo
reig
n
Co
mp
an
ies
Co
mp
an
ies
BNDES: longBNDES: long--term term
funding and support funding and support
during crisisduring crisis
BNDES: longBNDES: long--term term
funding and support funding and support
during crisisduring crisis
3440
47 5165
91
137
11 14 19 2433
50
69
BNDES’ disbursements
The BNDES played an important role during
the crisis, increasing its annual disbursement
more than 2x from 2007 to 2009
+ 111%
R$ billion
US$ billion
11 14
2003 2004 2005 2006 2007 2008 2009BNDES’ Net Income
more than 2x from 2007 to 2009
� Excellent funding
� Suitable profitability
� Good asset quality indicators: less than
0.2% of default rate since 2007 1.5
3.2
6.3
7.3
5.3
6.7
0.51.3
2.93.7
2.9
3.9
2004 2005 2006 2007 2008 2009
R$ billion
US$ billion
Stocks and
Debentures
Private Equity
FundsVenture
Capital
Funds
CapitaCapita
l l
MarkeMarke
tt
CapitaCapita
l l
MarkeMarke
tt
IPO
Equity, Funds and Capitalization
BNDES: Financing + Equity for any company sizeBNDES: Financing + Equity for any company sizeBNDES: Financing + Equity for any company sizeBNDES: Financing + Equity for any company sizeE
qu
ity
Lines, Products and Programs
Fin
an
cin
g
+Machinery and Machinery and
equipmentequipment
ExportsExportsInnovationInnovation
Business Enterprise Business Enterprise ProjectsProjects
Industrial ProjectsIndustrial Projects MSMEMSME
Environmental Environmental ResponsibilityResponsibility
……
� Financing: industrial investments,
innovation, exports (buyer and supplier
credit), etc
� Equity: up to 1/3 of the total capital share
If an international company prefers to find a local
partner, it is possible to mix equity and financing tools
in any case, provided that more than 50% remains
with Brazilian investors (local partner (s) + BNDES)
Examples of possible business models (1/3) :Examples of possible business models (1/3) : Joint VentureJoint Venture11Examples of possible business models (1/3) :Examples of possible business models (1/3) : Joint VentureJoint Venture11
ABC (International
Company)
EquityLocal Partner
Fiscal Incentives
(Law)
� PADIS: Income and value-added taxes
reduced to zero
� IT Law: tax exemptions for companies that
invest in R&D
� Innovation law: grants to private firms, tax
exemptions and cooperation research
institutions/private sector
� PDP (Production Development Policy) �
Displays elected as a strategic area
Government Support
1 Illustration of possible models. Actual operations need to be analyzed case by case
Equity +
Financing
Joint Venture
Equity
� Financing: industrial investments,
innovation, exports (buyer and supplier
credit), etc
� PADIS: Income and value-added taxes
If an international company prefers to invest through
a subsidiary, different financing tools are available,
as well as government incentives
Examples of possible business models (2/3) :Examples of possible business models (2/3) : SubsidiarySubsidiary11Examples of possible business models (2/3) :Examples of possible business models (2/3) : SubsidiarySubsidiary11
ABC (International
Company)
Equity
� PADIS: Income and value-added taxes
reduced to zero
� IT Law: tax exemptions for companies that
invest in R&D
� Innovation law: grants to private firms, tax
exemptions and cooperation research
institutions/private sector
� PDP (Production Development Policy) �
Displays elected as a strategic area
1 Illustration of possible models. Actual operations need to be analyzed case by case
Financing
ABC Subsidiary
Fiscal Incentives
(Law)
Government Support
� Financing: innovation lines
� FUNTEC: non-reimbursable funds to
innovation, necessarily applied through a
R&D Institute
� Financing: innovation
If an international company decides to develop R&D
activity in Brazil, grants and financing tools are
available, as well as government incentives
Examples of possible business models (3/3):Examples of possible business models (3/3): R&D R&D
Activity Activity through a through a Local R&D Institute Local R&D Institute andand CompanyCompany11
Examples of possible business models (3/3):Examples of possible business models (3/3): R&D R&D
Activity Activity through a through a Local R&D Institute Local R&D Institute andand CompanyCompany11
ABC (International
Company)
� Grants
� PADIS: Income and value-added taxes
reduced to zero
� IT Law: tax exemptions for companies that
invest in R&D
� Innovation law: grants to private firms, tax
exemptions and cooperation research
institutions/private sector
� PDP (Production Development Policy) �
Displays elected as an strategic area
1 Illustration of possible models. Actual operations need to be analyzed case by case
Fiscal Incentives
(Law)
Government Support
R&D Institute
Grants
(Funtec)Grants +
Financing
ABC subsidiary
Products
Financing
• The Display Company must formally present a
business plan to the BNDES for analysis and
consideration. The BP should demonstrate the
return on investment
• Equity
• Up to 1/3 of the total capital share
• The goal is an IPO on the Brazilian Stock Market
(BOVESPA)
BNDES BNDES
Support Support
ConditionsConditions
BNDES BNDES
Support Support
ConditionsConditions
(BOVESPA)
• Loans: require collateral and repayment capacity
Brazilian SideBrazilian Side
• Sustainable growth and macroeconomic stability
• Market size, growth potential, digital TV, digital inclusion programmes
• Availability and reliability of infrastructure & logistics
• Local partners
GovernmentGovernment
• PDP – Production Development Policy – FPD is a strategic area!
• Tax incentives, R&D and human resource formation initiatives
• Export / import legislation, Intellectual capital regulation
We are ready to participate in the building We are ready to participate in the building blockblock process for the process for the
Display industry in BrazilDisplay industry in Brazil
We are ready to participate in the building We are ready to participate in the building blockblock process for the process for the
Display industry in BrazilDisplay industry in Brazil
• Export / import legislation, Intellectual capital regulation
BNDESBNDES
• Equity
• Long term financing in suitable conditions
International International
PartnerPartner
• Equity
• Technology expertise
• Operational expertise
• International market
Stable and Fast-growing Economy Government Policy for Displays
Summing Up…Summing Up…Summing Up…Summing Up…
“Forecasts vary, but sometime in the decade
after 2014 … Brazil is likely to become the
world’s fifth largest economy”
The Economist, Nov/09
“Brazilian companies, after uncertainty
and sequential financial crisis, have a new
spring in their step”
Financial Times, Oct/09
Olympic Games
World Cup
Thank You Very
Much !!!
www.bndes.gov.br/englishwww.bndes.gov.br/english
