» General Purpose

To grant support to Brazilian audio-visual industry development, taking into consideration the sector's specifics, problems and limitations.

The program comprises the following segments: Production, Distribution and Trading, Exhibition and Infrastructure Services

» Effectiveness

Until 12.31.2008 

 

	Production

» Object

Financing to national independent producers and distributors and national programming enterprises for investment in production and co-production of Brazilian audio-visual works of independent production (1), except for publicity works.  

(1) Independent production means that carried out by a producing enterprise holding property rights on the work, which does not hold control or is a subsidiary or affiliate, direct or indirectly, of an enterprise providing sound and image broadcasting services, an enterprise of mass electronic communication by subscription or an economic group in the entertainment sector, in accordance with MP 2.228-01.

» Clients 

Enterprises with head office and managed in Brazil.

» Types of financial support 

Direct, Indirect Non-Automatic or Mixed.

» Financeable Items 

Items necessary to carry out Brazilian audio-visual works of independent production, except for publicity works, as listed below, with the exception of real estate acquisition: 

preproduction (development of scripts and storyboards, acquisition of rights, selection and qualification of cast and technical team, selection of locations for filming, purchase of sensitive/negative materials, among others);

production (hiring of technical team and cast, location of studios and equipment, acquisition of national software and equipment and imported equipment without national similar, performance of stage sets and clothing, infrastructure expenses, among others);

postproduction (photofinishing and laboratory, edition and mounting, finalization, image and sound treatment, digitalization, soundtrack, among others); 

Acquisition of property rights on Brazilian audio-visual works of independent production. 

» Minimum Limit for Direct Operations

R$ 1 million.

» BNDES Maximum Share

Micro, Small and Medium Enterprises: up to 100% of the financeable items

Large Enterprises: up to 70% of the financeable items.

For the financing portion destined to the acquisition of imported equipment without national similar, BNDES Maximum Share will be up to 80% of the equipment's FOB value. 

» Interest Rate

Direct Operation = Financial Cost + BNDES Basic Fees + Credit Risk Rate. 

Indirect Non-Automatic Operation = Financial Cost + BNDES Basic Fees + Financial Intermediation Rate + Accredited Financial Institution Fees. 

» Financial cost:

Long-Term Interest Rate [TJLP]: Brazilian enterprises of national holding.

US$ or UMBNDES plus Currency Basket Charges: Brazilian enterprises of foreign holding and, in case of imported equipment financing, for the corresponding portion. 

In case of BNDES raising funds with IPCA indexation, the financing of imported equipment without national similar may use IPCA as Financial Cost.

In case of an operation bound to receivables from co-production/distribution agreements in foreign currency, US$ or UMBNDES plus Currency Basket Charges may be used as financial cost.

» BNDES Fees:

Micro, Small and Medium Enterprises: 

3.0% p.a. for the imported equipment portion; 
1% p.a., for the national equipment portion and other items. 

Large Enterprises:

3.0% p.a. for the imported equipment portion; 
1.5% p.a. for the national equipment portion; and 
2% p.a. for the other items. 

Projects located at an area covered by the Regional Activating Program [PDR], which represents BNDES support policy to regional development, are granted a reduction in BNDES Basic Fees of 1 percentage point, considering BNDES Minimum Basic Fees of 1.0% p.a. 

» Credit Risk Rate:

Limited to 1.8% per annum (independently of the enterprise's risk classification). 

The operation fee may additionally include a bonus on the project performance. 

» Financial Intermediation Rate:

0.8% per annum. 

Note: Operations with micro, small and medium enterprises will be exempt of the financial intermediation rate.

» Accredited Financial Institution Fees:

Negotiated between the accredited financial institution and the client.

» Maturity

In accordance with the endeavor's payment capacity, limited to 8 years (including the grace period).

For the financing portion destined to the acquisition of imported equipment without national similar, total financing term will be up to 60 months, including the grace period. 

» Collaterals

Direct support operations: defined at the operation analysis.

Indirect operations: negotiated between the accredited financial institutions and the clients.

See: Guarantees 

 

	Distribution and Trading

» Object

Financing to national independent distributors and national programming enterprises for investment in the activities of dissemination, distribution and trading of audio-visual works.

Financing to national independent distributors or national programming enterprises for the acquisition of trading rights on Brazilian audio-visual works of independent production. 

» Clients

Enterprises with head office and management in Brazil. 

» Types of Financial Support

Direct, Indirect Non-Automatic or Mixed.  

» Financeable Items

items necessary to the activities of dissemination, distribution and trading of audio-visual works in the country (copies, digitalization, publicity, promotion, dissemination and marketing, among others), except for real estate acquisition;  

acquisition of trading rights of Brazilian audio-visual works of independent production; 

items necessary to the activities of dissemination, distribution and trading of Brazilian audio-visual works of independent production abroad (copies, digitalization, publicity, promotion, dissemination and marketing, among others); 

items necessary to the development and implementation of new means of distribution and trading, including the trading of digital files of audio-visual works, among others. 

» Minimum Limit for Direct Operations

R$ 1 million. 

» BNDES Maximum Share

Micro, Small and Medium Enterprises: up to 100% of the financeable items

Large Enterprises: up to 70% of the financeable items. 

» Interest Rate

Direct Operation = Financial Cost + BNDES Basic Fees + Credit Risk Rate.

Indirect Non-Automatic Operation = Financial Cost + BNDES Basic Fees + Financial Intermediation Rate + Accredited Financial Institution Fees. 

» Financial cost:

Long-Term Interest Rate [TJLP]: Brazilian enterprises of national holding.

US$ or UMBNDES plus Currency Basket Charges: Brazilian enterprises of foreign holding. 

In case of BNDES raising funds with IPCA indexation, the financing of imported equipment without national similar may use IPCA as Financial Cost.

In case of an operation bound to receivables from co-production/distribution agreements in foreign currency, US$ or UMBNDES plus Currency Basket Charges may be used as financial cost.

» BNDES Fees:

Micro, Small and Medium Enterprises: 1% p.a. 

Large Enterprises: 2% p.a. 

Projects located at an area covered by the Regional Activating Program [PDR], which represents BNDES support policy to regional development, are granted a reduction in BNDES Basic Fees of 1 percentage point, considering BNDES Minimum Basic Fees of 1.0% p.a. 

» Credit Risk Rate:

Limited to 1.8% per annum (independently of the enterprise's risk classification). 

The operation fee may additionally include a bonus on the project performance. 

» Financial Intermediation Rate:

0.8% per annum. 

Note: Operations with micro, small and medium enterprises will be exempt of the financial intermediation rate.

» Accredited Financial Institution Fees:

Negotiated between the accredited financial institution and the client. 

» Maturity

In accordance with the endeavor's payment capacity, limited to 8 years, including the grace period. 

» Collaterals

Direct support operations: defined at the operation analysis. 

Indirect operations: negotiated between the accredited financial institutions and the clients. 

See: Guarantees 

 

	Exhibition

» Object

Financing to exhibition enterprises for investment in implementation, modernization, expansion and restoration of projection rooms of audio-visual works in the country.

» Clients

Enterprises with head office and management in Brazil. 

» Types of Financial Support

Direct, Indirect Non-Automatic or Mixed.   

» Financeable Items

civil works (implementation, modernization or restoration of exhibition rooms in the country); 

projects, installations and mounting; 

acquisition of national equipment and imported equipment without national similar; 

restoration, by an enterprise located in Brazil, of used projection equipment, including imported items; 

preoperating expenses; and 

other national expenditures associated to the investment. 

» Minimum Limit for Direct Operations

R$ 1 million. 

» BNDES Maximum Share

Micro, Small and Medium Enterprises: up to 100% of the financeable items 

Large Enterprises: up to 70% of the financeable items.  

For the financing portion destined to the acquisition of imported equipment without national similar, BNDES Maximum Share will be up to 80% of the equipment's FOB value. 

» Interest Rate

Direct Operation = Financial Cost + BNDES Basic Fees + Credit Risk Rate. 

Indirect Non-Automatic Operation = Financial Cost + BNDES Basic Fees + Financial Intermediation Rate + Accredited Financial Institution Fees. 

» Financial cost:

Long-Term Interest Rate [TJLP]: Brazilian enterprises of national holding. 

  US$ or UMBNDES plus Currency Basket Charges: Brazilian enterprises of foreign holding and, in case of imported equipment financing, for the corresponding portion. 

In case of BNDES raising funds with IPCA indexation, the financing of imported equipment without national similar may use IPCA as Financial Cost.

» BNDES Fees:

Micro, Small and Medium Enterprises:

3.0% p.a. for the imported equipment portion; 
1% p.a., for the national equipment portion and other items. 

Large Enterprises: 

3.0% p.a. for the imported equipment portion; 
1.5% p.a. for the national equipment portion; and 
2% p.a. for the other items. 

Projects located at an area covered by the Regional Activating Program [PDR], which represents BNDES support policy to regional development, are granted a reduction in BNDES Basic Fees of 1 percentage point, considering BNDES Minimum Basic Fees of 1.0% p.a. 

» Credit Risk Rate:

Limited to 1.8% per annum (independently of the enterprise's risk classification). 

The operation fee may additionally include a bonus on the project performance. 

» Financial Intermediation Rate:

0.8% per annum. 

Note: Operations with micro, small and medium enterprises will be exempt of the financial intermediation rate.

» Accredited Financial Institution Fees:

Negotiated between the accredited financial institution and the client. 

» Maturity

In accordance with the endeavor's payment capacity, limited to 8 years, including the grace period. 

For the financing portion destined to the acquisition of imported equipment without national similar, total financing term will be up to 60 months, including the grace period. 

» Collaterals

Direct support operations: defined at the operation analysis.

Indirect operations: negotiated between the accredited financial institutions and the clients. 

See: Guarantees 

 

	Infrastructure

» Object

Financing to implementation, expansion and modernization of enterprises providing infrastructure services for the performance of audio-visual works. 

Financing to implementation, expansion and modernization of local manufacturers of equipment for production, postproduction and projection of audio-visual works. 

» Clients

Enterprises with head office and management in Brazil. 

» Types of Financial Support

Direct, Indirect Non-Automatic or Mixed.   

» Financeable Items

civil works (implementation, modernization or restoration of studios, laboratories and postproduction and digitalization centers); 

acquisition of software and national equipment and imported equipment without national similar; 

projects, installations and mountings; 

preoperating expenses; and 

other national expenditures associated to the investment. 

» Direct Operation Minimum Limit

R$ 1 million. 

» BNDES Maximum Share

Micro, Small and Medium Enterprises: up to 100% of the financeable items 

Large Enterprises: up to 70% of the financeable items.

For the financing portion destined to the acquisition of imported equipment without national similar, BNDES Maximum Share will be up to 80% of the equipment's FOB value. 

» Interest Rate

Direct Operation = Financial Cost + BNDES Basic Fees + Credit Risk Rate. 

Indirect Non-Automatic Operation = Financial Cost + BNDES Basic Fees + Financial Intermediation Rate + Accredited Financial Institution Fees. 

» Financial cost:

Long-Term Interest Rate [TJLP]: Brazilian enterprises of national holding. 

US$ or UMBNDES plus Currency Basket Charges: Brazilian enterprises of foreign holding and, in case of imported equipment financing, for the corresponding portion. 

In case of BNDES raising funds with IPCA indexation, the financing of imported equipment without national similar may use IPCA as Financial Cost.

» BNDES Fees:

Micro, Small and Medium Enterprises: 

. 3.0% p.a. for the imported equipment portion; 
. 1% p.a., for the national equipment portion and other items.

Large Enterprises:

. 3.0% p.a. for the imported equipment portion; 
. 1.5% p.a. for the national equipment portion; and 
. 2% p.a. for the other items. 

Projects located at an area covered by the Regional Activating Program [PDR], which represents BNDES support policy to regional development, are granted a reduction in BNDES Basic Fees of 1 percentage point, considering BNDES Minimum Basic Fees of 1.0% p.a. 

» Credit Risk Rate:

Limited to 1.8% per annum (independently of the enterprise's risk classification). 

The operation fee may additionally include a bonus on the project performance. 

» Financial Intermediation Rate:

0.8% per annum. 

Note: Operations with micro, small and medium enterprises will be exempt of the financial intermediation rate.

» Accredited Financial Institution Fees:

Negotiated between the accredited financial institution and the client. 

» Maturity

In accordance with the endeavor's payment capacity, limited to 8 years, including the grace period. 

For the financing portion destined to the acquisition of imported equipment without national similar, total financing term will be up to 60 months, including the grace period. 

» Collaterals

Direct support operations: defined at the operation analysis.

Indirect operations: negotiated between the accredited financial institutions and the clients. 

See: Guarantees 

» Addressing

The support requests are forwarded to BNDES by means of a Consulting Letter, filled out in accordance with directions of the Guide on Information for Previous Consulting - forwarded by the applicant enterprise or by means of its preferred accredited financial institution, to:

Banco Nacional de Desenvolvimento Econômico e Social [BNDES]
Área de Planejamento [AP]
Departamento de Prioridades [DEPRI]
Av. República do Chile, 100 - Protocolo - Térreo
20031-917 - Rio de Janeiro, RJ

» See

Automatic BNDES