The “B2 Infra” will have at least 30% of BNDES resources and 10% of the IDB, whereas the rest will be raised in the private sector, especially from institutional investors
BNDES Credit Funds, launched yesterday with Anbima, will guide the Fund structure, which will be announced within 60 days. The prediction is that it will be operating in the 2nd semester
The Brazilian Development Bank (BNDES) and the Inter-American Development Bank (IDB) announced a partnership to set up a US$ 1.5-billion infrastructure credit fund.
Such fund, initially called “B2 Infra,” will count on at least 30% of BNDES resources and 10% of the IDB, whereas the rest will be raised by the private sector, especially from institutional investors.
The B2 Infra will focus on investing in debt instruments in the sectors of transport, energy, sanitation, and social infrastructures, such as health and education.
Within 60 days, both institutions will announce the Fund structure, in accordance with the rules of the BNDES Credit Funds, disclosed yesterday with Anbima. The product is expected to start operating in the second half of the year.
“This is another initiative aimed at using public resources to leverage private resources for infrastructure, employing the experience and extensive knowledge of both institutions in financing infrastructure,” explains Eliane Lustosa, Director of the Capital Market Division of BNDES.
“The ‘IDB Invest’ will provide its entire ability to the Fund of analysis and institutional integrity, social and environmental risks, and financial structuring to increase the financing of sustainable infrastructure in Brazil,” said Hugo Florez Timorán, IDB Representative in Brazil.