Sergio Földes Guimarães Deputy Managing Director – International Division BNDES 55-21-21726893...
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Transcript of Sergio Földes Guimarães Deputy Managing Director – International Division BNDES 55-21-21726893...
Sergio Földes GuimarãesDeputy Managing Director – International DivisionBNDES [email protected]
Infrastructure investments (% GDP)
The evolution of infrastructure
cycles (R$ billion, 2013 prices)
Energy
ForecastLogistics
Sanitation
End of 1st Telecom cycle
Beginning of Energy cycle
Beginning of Logistics cycle
Solid Trend of Infrastructure investments underway
Sergio Földes Guimarães - BNDES
Sectors - US$ billion* 2010-13 2015-18 Total % Change
TELECOM 48.1 57.9 20.4
ENERGY 84.7 89.4 5.5
SANITATION 18.7 16.6 -11.4URBAN MOBILITY 5.5 21.3 284.6
HIGHWAYS 28.5 27.2 -4.5RAILWAYS 10.6 12.3 16.0PORTS 6.8 17.0 150.0AIRPORTS 5.1 6.8 33.3
Total 207.7 248.5 19.7
2015-2018 Infrastructure investment prospects
Source: BNDES, June 2015 *Exchange rate: US$ 1 = R$ 2.35 (2014 average)
Sergio Földes Guimarães - BNDES
Bonds issued (with + without tax breaks)
2010-2015, bonds issued:R$ 17 billion
Sector Volume (R$ Million) # Issues
Roads 9.289 24
Hydro Power Plants 1.942 7Railways 1.851 3Termhal Power Plants 1.335 3
Transmission Lines 956 7Airports 900 3Gas Distribution 412 1Wind Power Plants 336 7
Ports 321 1Small Hydro Power Pl 300 2
Sanitation 200 1Total 17.842 58
Framework conditions for infrastructure financing
Sergio Földes Guimarães - BNDES
Adequate financing structure
Attractive rates of return
ConcessionaireEquity DebtDevelopers
Equity/Mezzanine
investors
BNDES
Capital Markets
Banks
Users
Construction
Grantor
Insurance
Adequate risk allocation and a balanced structure of collaterals
Strong demand
2011-2013: R$ 44.3 billion - Investments in infrastructure by Private Equity Vehicles (Funds)
BNDES has invested in 8 infrastructure fundsR$ 9,3 bi - is the total capital committed by 8 fundsR$ 1,1 bi - is the capital committed by BNDES
Sergio Földes Guimarães - BNDES
Framework conditions for infrastructure financing
Airports
Ports
Source: Valor Grandes Grupos, 2014
Railways
Roads
Current status: Stablished Operators & Developers
Sergio Földes Guimarães - BNDES
Room for new players!
2015 2016 2017Toll roadsAirportsPortsRailways
2015 2016 2017 2018Toll roadsAirportsPortsRailways
Capital Markets
Concessionaire
equity debtDevelopers BNDES
Banks
Users
Construction
Grantor
insurance
Equity/Mezzanine investors
Project bonds
Equity or Mezzanine
Debt
Projected timeline of Equity/Mezzanine Debt &
Project Bonds based on current bids
Sergio Földes Guimarães - BNDES
Sources: IBGE and BNDES
Infrastructure investments& BNDES disbursements
US$ billion
Source: BNDES
Mostly Project Finance
BNDES
Sector N. projects Financing (R$ bn)
Investments (R$ bn)
Transport 194 63 139
Energy 492 152 262
Sergio Földes Guimarães - BNDES
2003-2014: Projects supported by BNDES (0 default)
TOLL ROADS
25% 30%
35% 30%35%up to 70%
10% 35%
PORTS
35% 30%
30%25% 25%up to50% 20%
10% 25%
2015 enhanced financing conditions: all in costs reduced up to 200 bps
Sergio Földes Guimarães - BNDES
TJLP denominateddebt
Equity/Cash Flow
OptionalIPCA or SELIC
DebenturesAdditional TJLP Basic rate (SELIC) or inflation (IPCA) denominated debt
Prefered rate Market rate
AIRPORTS
35% 30%
30% 15% 15% up to 30%40%
20% 15%
RAILWAYS
70% 30%up to 70%
2015 enhanced financing conditions: all in costs reduced up to 200 bps
Sergio Földes Guimarães - BNDES
Equity/Cash Flow
OptionalIPCA or SELIC
DebenturesAdditional TJLP Basic rate (SELIC) or inflation (IPCA) denominated debt
Prefered rate Market rate
Auction
3 to 6 months
Contracts Signed/
Bridge Loan Approved
LT LoanApproved
6 to 12 months
30 months to 60 months
Project Completion
... 20 to 30 years total
Bridge Loan Long Term Loan (35-70%)
Infrastructure Bonds (10-35%)
Equity and Mezzanine Debt (Strategic &
Financial Investors)
Financial Investors
Timeline
OtherBanks
Non-recourseLimited
recourse
&
Equity/Cashflow (20-30%)
Typical project finance timeline
Sergio Földes Guimarães - BNDES
With bond issuance
Shared guarantees
Cross-default
Amortization curve to be based on French Amortization System (Price Table) instead of Constant Amortization System
Increased TJLP participation
With partners insurance companies, working on a guarantee on demand
T A K E A W A Y SThe years to come will offer low risk, steady and adequate returns to private investors in Brazil
As in its 63 years of experience, BNDES will maintain total commitment to support infrastructure
2015: BNDES proposes innovations to engage in the private finance industry and capital markets
Cost reduction in finance conditionsCredit enhancement mechanisms
BNDES credit enhancement conditions
Sergio Földes Guimarães - BNDES
Sergio Földes GuimarãesDeputy Managing Director – International DivisionBNDES
Thank you!