Variable-Income Securities

The BNDES operates with variable-income securities, complementing its financing products, through its BNDES Participações S.A. integral subsidiary (BNDESPAR).

BNDESPAR supports Brazilian publicly-listed and private companies that can enter the Capitals Market by means of subscription of shares, convertible or permutable debentures, mutual fund shares and other securities.

BNDESPAR’s support is present in all growth stages of companies. For seed companies, there is the Seed Capital Fund, Criatec. In the case of new and startup companies, BNDESPAR supports capital venture funds. On the other hand, investments in emerging companies are made by means of equity private funds. In late 2011, BNDESPAR participated as a shareholder in 31 investment funds, through which it supported 133 companies. The image below illustrates the growth chain of the companies and the respective modalities of support.

Seed companies: seed capital. Fledgling and startup companies: supported through venture capital funds. Emerging and mature companies: support through private equity governance funds. Mature companies: initial public offering. Capital market: secondary offers.

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The publicly-listed companies can obtain support by means of private structured operations, which have product flexibility, or the participation of BNDESPAR in public offers.

BNDESPAR’s operations follow the strategic guidelines of the BNDES System and are aimed at supporting capitalization, development, consolidation and internationalization processes of Brazilian companies, besides reinforcing their capital structures, inducing the adoption of better sustainability practices, strengthening innovative capacity and business governance. The corporate shares are always of a minority nature, with special attention to forming asset liquidity, aimed at recycling resources.

Another important aspect refers to strengthening and modernizing the Brazilian Capitals Market by increasing the offer of securities, developing new products for investors and democratizing company capital ownership. BNDESPAR has contributed to increasing the volume traded on the stock market; with R$ 16 billion monetized via the stock market over the last five years.