Social and Environmental Development
The BNDES significantly intensified its international activities in 2011 by participating in missions abroad, receiving foreign delegations as well as the activities of its international offices. Important steps were taken to consolidate its foreign presence, with the development of the business plans in London and Montevideo.
Important disclosure and technical cooperation efforts were carried out, aimed at placing the Bank closer to new emerging markets, namely the Asian and African markets, as well as establishing partnerships with more developed markets, with the assistance of the London office. The Montevideo office is especially important in projecting the Bank’s image throughout the region and in fostering South American integration.
Also worthy of note is the enhanced international institutional relationship, made possible by negotiating cooperation instruments between the Bank and foreign entities; participating in events abroad; as well as meetings with multilateral agencies and official government missions. This is made evident in the Bank’s growing participation in national and international associations and in the significant increase in the number of foreign delegations that have visited its facilities.
International interest in the BNDES reflects both the growing importance of emerging economies in the global economy, in which Brazil appears as one of the positive highlights, as well as the Bank’s relevant role as a mitigating agent of the effects of the crisis in Brazil.
Among the international forums that have contributed to strengthening institutional representation and responding to the special interest in investment opportunities in Brazil, the Bank’s participation was noteworthy in the World Economic Forum in Davos, and in the Latin American session in Rio de Janeiro; in the International Economic Forum in Saint Petersburg; in the United Nations’ Climate Change Conference in Durban; in the World Bank’s and International Monetary Fund’s Annual Meeting in Washington; in the Annual Meeting of the Inter-American Development Bank in Calgary; and, in the disclosure mission of the Brazilian financial market, in the renowned road show Best Brazil, in Asia.
International fundraising to complement the Bank’s budget, both in loan operations with international entities, as well as in the financial market, provided important and innovative opportunities, confirming international investors’ good receptivity of the BNDES. Strategic guidelines for diversification and the search for efficiency were pursued, with the Bank once again accessing the Swiss Franc and bank loan markets, after a decade of absence, providing lower costs and creating opportunities for future fundraising.
Another remarkable change was the focus on international entities, with the transition from specific to global interests. While in the past, fundraising was steered by the foreign entity’s interest in developing specific sectors in Brazil, recent fundraising has revealed a global concern for environmental issues, including sustainability and support for renewable energy in financed projects.
A total of US$ 970 million was contracted, of which US$ 300 million came from the Japan Bank for International Cooperation (JBIC), within the scope of a new credit line called Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN), earmarked for projects that favor global environmental conservation and energy efficiency, the use of renewable sources of energy, and the reduction of the greenhouse gas emissions. And approximately US$ 670 million (€ 500 million) came from the European Investment Bank (EIB), earmarked for the support of projects that favor environmental sustainability and mitigate the global climate change effects. This contract was signed in October with no need for a sovereign guarantee, reflecting the perception of lower risk assigned to the BNDES.
The global crisis has provided Brazilian companies with foreign investment opportunities, consolidating a process that has been developing for a few decades. Company transactions encourage the Bank’s internationalization process itself, which has been preparing itself to support these companies with new financial instruments and resources raised on new foreign markets.
Operations with national and international institutions
- Sponsorship of events on foreign policy, as well as research with the Brazilian International Relations Center (Cebri) and companies to improve and strengthen the bilateral trade and investment structures and the governmental agenda, such as the Brazil-China Business Council (CEBC);
- Seminars associated with the socio-economic impacts of transformations in contemporary China on Latin America and Brazil, promoted by the Brazil-China Studies Institute (Ibrach);
- Participation in the annual meeting, seminars and training courses for technical and financial cooperation among members of the Latin American Financial Institutions for Development Association (Alide);
- Participation as a member of the Brazil Industries Coalition (BIC), a joint initiative of the Brazilian Embassy in Washington, and the Brazilian private sector, which provides an interaction platform between Brazilian companies, the North American Congress and the Executive branch;
- Participation on committees promoted by the Institute of International Finance (IIF), created in response to developing countries’ foreign debt;
- Participation in the International Development Finance Club (IDFC) initiatives, led by the Kreditanstalt für Wiederaufbau (KfW), related to climate finance, financing infrastructure and innovation in companies, as well as reducing poverty, which includes the main development banks in the world;
- Participation in discussions to legally establish the Montreal Group, led by the Banque de Développement du Canadá (BDC), active in financing and support policies for micro, small and medium-sized companies (MSMEs); and
- Reestablishment of the relationship with the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), comprising 127 members, in 44 countries, interested in promoting the sustainable development of Asia and the Pacific.
The BNDES has signed agreements and memoranda with the following institutions, among which the new emerging market partners are highlighted: Japan Bank for International Cooperation and Nippon Export and Investment Insurance (Japan), Mubadala Development Company (United Arab Emirates), Garanti-Instituttet for Eksportkreditt (Norway), The Export-Import Bank of Korea, Banco de la Nación and Banco de Inversión y Comercio Exterior Sociedad Anônima (Argentina), Société Fédérale de Participations et d’Investissement (Belgium) and with the members of the BRICS development bank association, a group comprising Brazil, Russia, India, China and South Africa.
To consolidate knowledge on the BNDES’ international operations and the global economy, several newsletters were produced, including follow-up on investments made by Brazilian companies abroad, which assist the analysis of their internationalization strategies and their impacts on access to new markets, better management practices, technological resources and innovation, as well as their effects on the Brazilian economy.