Ministry of PlanningMay 2015

Alternatives for Financing Infrastructure

Infrastructure Oportunities- Roads- Railways- Airports- Ports

INFRASTRUCTURE OPPORTUNITIESROADS

New concessions:• 4 Procedures for Request for Proposal/ Expression of Interest

(PMIs) launched and expected to be auctioned until the end of this year

• BR-476/153/282/480 (PR/SC) – 492.1 km – R$ 3.45 bi• BR-364 (GO/MG) – 439.2 km – R$ 3.1 bi• BR-163/230 (MT/PA) – 943 km – R$ 6.6 bi• BR-364/060 (MT/GO) – 703.7 km – R$ 4.1 bi

• New call for Request for Proposal/Expressions of Interest (PMIs) soon

INFRASTRUCTURE OPPORTUNITIESROADS

Investments in existing concessions:• 4th lane Porto Alegre/Canoas (RS)

• Duplication Rio/Petrópolis (RJ)

• New lane on the Serra das Araras (SP)

Public investment (7,002 km of works funded with the Federal Budget resources: 2,612 km of duplication / adjustment and 4,390 km of construction and paving)

INFRASTRUCTURE OPPORTUNITIESRAILWAYS

Projects under construction phase:• Norte-Sul (FNS)• FIOL• Transnordestina

Projects under analysis to RFP (PMI) to be tendered in 2015:• Lucas do Rio Verde/Campinorte (FICO)• Sinop-Miritituba• Açailândia-Barcarena• Estrela D’Oeste - Dourados

Transocean railway project (BRA/PER/CHI)

INFRASTRUCTURE OPPORTUNITIESAIRPORTS AND PORTS

New Airport concessions: Request for Proposal (PMIs) will be published soon.

Ports:• Expansion of investments in Private Use Terminals (TUPs):

• 39 terminals approved.• R$ 10.9 billion in investments.

• Renewal of existing leases.• Public consultation for the concession of the access channel

dredging.

Financing Infrastructurein Brazil

Source: Central Bank of Brazil.

CREDIT OPERATIONS

20

25

30

35

40

45

50

55

60

0

400,000

800,000

1,200,000

1,600,000

2,000,000

2,400,000

2,800,000

3,200,000

55

Banking Loans% PIB R$ Million

CAPITAL AND FINANCIAL MARKET NON BANK PRIVATE FINANCING (R$ Million)

2011 2012 2013 2014 2015*

Equities 13.536 7.365 6.223 15.099 16.107

Private Equity Investment Fund (FIP) 3.245 3.325 4.178 1.125 662

Private Bonds (Debêntures) 3.180 50.047 10.945 3.674 15.472

Mortgage Backed Securities (Certificado de Recebíveis Imobiliários - CRI) 3.966 3.354 2.459 2.274 487

Real Estate Fund (Fundo de Investimento Imobiliário - FII) 7.665 11.071 10.550 4.727 1.962

Collateralized Debt Obligation Investment Fund (Fundo de Investimento em Direitos Creditórios - FIDC)

7.178 4.078 3.541 1.896 1.703

Others 2.588 7.741 1.779 1.237 6

Total 41.357 86.981 39.674 30.031 36.399

Source: CVM

* Jan - Apr

Source: CVM and BNDES.

CAPITAL MARKET AND BNDES PRIMARY RESOURCES

2011 2012 2013 2014 -

20

40

60

80

100

120

140

160

180

200

41

87

40 30

140

156

190 188

Capital Market BNDES Disbursement

R$ billion

Source: BNDES and Seae/MF.

BNDES – Disbursement to InfrastructurePrivate Bonds - Issuance for Infrastructure PRIMARY RESOURCES

2011 2012 2013 2014 2015* -

5

10

15

20

25

30

35

20

26

31 31

34

0

4

65

1

BNDES - Disbursement for Infrastructure Private Bonds - Issuance for Infrastructure

R$ billion

* BNDES estimative for 2015.

LIQUIDITY AT THE SECONDARY MARKETVOLUME TRADE VERSUS STOCK

Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-150.00%

1.50%

3.00%

4.50%

6.00%

7.50%

9.00%

10.50%

0.94%

5,48%

Private Bond (Debênture)Linear (Private Bond (Debênture))

Fonte: Seae/MF

Hydroelectric Power Plant 66.832

Oil 30.000

Roads 32.492

Wind Power 16.325

Airport 8.878

Railway 7.816

Dutovia 7.000

Thermal Electric Power Plant 5.235

Transmission Lines 5.192

Ports 2.552

Large Broad Band Data Transmission 2.405

Others 2.703

Total 187.429

INFRASTRUCTURE INVESTMENT PROJECTS APPROVED (R$ MILLION) POTENTIAL ISSUANCE OF PRIVATE BONDS

Source: Seae/MF

Bank and Capital MarketsChallenges Ahead

• Eliminating mismatches between loans and deposits.

• Increasing institutional, and legal stability.

• Reducing costs.

• Improving:

• human capital expertise.

• secondary market liquidity.

• risk mitigation.

Bank and Capital MarketsChallenges Ahead

• Directed lending as promoter of free credit and of development capital market

• Funding in TJLP will be proportional to the emission of infrastructure bonds

• Development of contingent credit line(stand-by) for early stage investments, when there is greater risk

FINANCE MODEL - EXAMPLE

Timeline

Auction

Contracts Signed/Bridge Loan Approved LT Loan

Approved Completion End of

Concession

3 Months 6 Months 30 Months

to 60 Months

...30 years total

Investors, Local & Foreign

BNDESInvestors, Local &

Foreign

Equity

Bridge Loan

Infrastructure Bonds

Long Term Loan – TJLP + Market

Source: BNDES

Thank You