Financing instruments for ventures in Brazil

The Brazilian National Social and Economic Development Bank (BNDES) is the main federal institution providing financing solutions for long term investment projects in all sectors of the economy, acquisition of industrial machinery and equipments, exports of national goods and services, and capital structuring for private enterprises. As part of its 2009-2014 Plan, BNDES promotes strong corporate policies on giving emphasis to the aspects of innovation, local and regional development and environmental and social responsibility of all its supported initiatives.

The financial support is negotiated either directly (BNDES and entrepreneur) or indirectly (through a formal financing agent such as The Bank of Brazil or other regional banks), and conducted in respect to the size of the enterprises, defined according to its annual gross operating revenues as follows: Micro (R$ 2,4mi), Small (R$ 16mi), Medium (R$ 90mi), Medium – Large (R$ 300mi), Large (over R$ 300mi).

BNDES has specific products and programs to support exporting and internationalization of Brazilian ventures. Among the main productsout stands BNDES Exim, which is a financing line that supports production of goods and services that are intended for commercialization in international markets, and BNDES Finem, which is a financing line for the amount of over R$ 10mi for implementation of projects of expansion and modernization of enterprises, internationalization and acquisition of machinery and equipments.

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