The BNDES finances projects based on criteria that prioritize development with social inclusion, creating jobs and income. The Bank’s operations cover most economic activity sectors. Below are the types of projects supported by the BNDES, per segment:
Beef cattle production, establishing or recovering pastures, costs and cultivation treatment until the first harvest/crop, among others, are some of the projects that are eligible for funding. Granting financial support is subject to evaluation of environmental impacts, according to the BNDES’ environmental policy guidelines.
The BNDES supports investment projects that aim at increasing the productivity and efficiency of companies of all sizes. Also, special financing conditions are offered to projects focused on modernizing the infrastructure of undertakings in education, health, social welfare and tourism.
The BNDES seeks to encourage the development of creative companies and agents, aimed at expanding and making the cultural goods and services market more efficient, with economic sustainability and social gains. For this, it offers a diversified set of financial support tools to the cultural industry, including application of non-reimbursable funds in artistic/cultural collections and projects for the preservation of Brazilian historical heritage. In addition to investing in projects and companies in the cultural sector, the BNDES also adds value to Brazilian culture by regularly offering free exhibits and presentations, besides sponsoring cultural events across the country.
In keeping with its mission, the BNDES finances social projects that directly improve the standard of living of the Brazilian population. Such initiatives aim at reducing regional inequalities in Brazil, among other things. It is vital, in any funding approval process, that efforts comply with social rights. This is just as important as financial and economical requirements. Therefore, we aim at maximizing the positive social impacts of financed projects, such as generating and maintaining jobs, as well as increasing local development.
Investment projects that aim at expanding the Brazilian industrial sector (including the cattle-raising and agriculture sector) are heavily promoted. The objective of the BNDES’ efforts is to oversee three significant challenges: expanding industry’s production capacity; increasing exports; and advancing innovation capacity, which is an essential growth factor in a globalized world. The BNDES’ policy is driven by the Production Development Policy guidelines, established by the federal government.
Support for solutions to infrastructure problems is of major importance, as this is fundamental to improving the well-being of the Brazilian population. Consequently, it is possible that all citizens gain access to basic services, such as electricity, communications, urban public transport and sanitation. At the same time, the expansion of infrastructure fosters a drop in costs, an increase in productivity, improvement in the quality of goods and services within the production structure, and consolidation of regional integration.
This is a strategic priority for the BNDES, mainly due to its fundamental nature in raising the productivity and competitiveness of companies and in creating wealth for Brazil. The BNDES’ goal is to contribute to the increase in innovation activities in the country and to their systematic implementation. For this, the Bank seeks to finance investment projects associated with building skills and innovative environments, so that Brazilian companies can achieve a better competitive position.
See Also: Innovation Policy for Inclusive Growth - Technical Conference on Trends, Policies and Evaluation (World Bank-OECD-BNDES, Rio de Janeiro, Brazil - October 24-25, 2011).
Social and environmental development is a strategic guideline that is reflected in the financing policy. The Bank always seeks to improve the environmental analysis criteria of projects that require credit, as well as to offer financial support to companies that could bring benefits to sustainable development. In this vein, the Climate Fund Program stands apart as it offers support for investments in Brazil that are related to reducing greenhouse gas emissions and to adapting to climate change.
Additionally, the BNDES reinforces its environmental policy by means of internal efforts aimed at involving the staff and of protocols in which the institution takes on a public commitment to foster development in harmony with the ecological balance. Please read more about the BNDES and its social and environmental responsibility.
The BNDES operates as an underwriter of bonds and securities – such as shares and debentures of publicly-listed companies or those of companies that may enter the capitals market in the medium term – including internationalization and restructuring operations in competitive companies, mergers and incorporations. Within this context, priority is given to small and medium-sized innovative companies which may receive direct participation, or participation through closed-end investment funds and which, due to their operation per region or sector, offer broader reach to the operation, also enabling the leverage of private resources for capital in such companies.
As the main financing agent of the largest South American country, the BNDES pays special attention to international trade, through financing mechanisms for exports of Brazilian products and services. Consideration is also given to increasing the international presence of Brazilian companies abroad. Please refer to the modalities of support offered by the BNDES for foreign trade and for the internationalization of Brazilian companies.