BNDES - Brazilian Development Bank
   




BNDES launches fixed rate to finance working capital

04/05/2018

 BNDES Contracts can already count on fixed rate as of April 24

 The maturity offered will be from 3 to 5 years and the estimated cost is 9.5% per annum plus spread of the accredited financial institution

 In May, the fixed rate is expected to be offered also to the BNDES Finame line, which finances capital goods

 

The Brazilian Development Bank (BNDES) will offer fixed-rate financing for the BNDES Giro program, as of April 24. The fixed rate comes as an additional alternative to Long-Term Rate (TLP), reference to bank loans and will be worthwhile to micro, small and medium-sized enterprises, with a revenue of up to R$ 300 million per year.

The fixed-rate financing in BNDES Giro, the line of support to working capital, seeks to meet companies that do not want to be exposed to liability linked to inflation. TLP has a prefixed and a variable installment, linked to inflation (IPCA). 

Predictability – The fixed-rate loan also serves companies that want to have maximum control over future financial expenses. In the BNDES accounts, the fixed rate for BNDES Giro, in operation with a maturity from three to five years, will cost 9.5% per annum plus spread of the accredited financial institution. The estimated cost at 9.5% per annum is equivalent to the DI variation plus 0.5% per annum at the time. The rate will be reviewed monthly for new operations. Once contracted, the value of the rate stays the same during the validity of the contract, giving predictability about the cost of the operation, and allowing smaller companies to have more control and plan the loans. 

The newsletter on the systematics and pricing of fixed-rate operations was disclosed this month by BNDES to the banks that intermediate its funds. According to the document, the fixed-rate pricing will be released daily.

Finame – The expectation is that, by the end of May, the Bank will also open the possibility of companies to contract loans with a rate fixed on the BNDES Finame line, which finances capital goods. 

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