Brasília – The Brazilian Development Bank (BNDES) has received 9.99 billion Brazilian reals (5.6 billion) worth of Brazilian government bonds. The ruling authorizing for the bonds to be issued was published this Friday (20th) in the Federal Official Gazette of Brazil.
The operation concludes the allocation of 55 billion reals (US$ 31 billion) to the bank, authorized by means of a provisional measure issued in June last year and passed by the National Congress in June. The next-to-last instalment of the aid package, of 15 billion reals (US$ 8.4 billion), was transferred in December.
In this type of operation, the Treasury issues the bonds and transfers them to the BNDES, which sells them on the market on an as-needed basis. The funds will be used within the third phase of the Programa de Sustentação do Investimento (PSI 3 – Sustained Investment Program), a line of financing for equipment purchases, infrastructure works and fostering exports with subsidized interest rates.
The injection of funds into the BNDES through government debt bonds is a mechanism the government has been deploying to raise the capital of the institution, which received approximately 235 billion reals (US$ 132.8 billion) over the last three years. In addition to the 55 billion real transfer authorized in 2011, the bank received 100 billion reals (US$ 56 billion) in 2009 and 80 billion reals (US$ 45 billion) in 2010.
*Translated by Gabriel Pomerancblum
