BNDES, Caixa to manage Brazil-China infrastructure fund
The Brazilian state-owned banks will contribute $5bn to the $20bn fund, but other local banks could also participate
State-owned lenders BNDES and Caixa Economica Federal will
manage a $20bn infrastructure fund formed by Brazil and China
to invest in infrastructure projects in the South American
The Brazil-China Cooperation Fund will receive $15bn from
the Chinese Cooperation Fund for Investment in Latin America
(Claifund) and $5bn from financial institutions in Brazil. The
fund is open to other banks in Brazil, other than BNDES and
Caixa, BNDES said in a statement.
For every $1 that the Brazilian banks provide in funding,
Claifund will contribute $3, BNDES said. The national
development bank also said the fund placed priority on
financing logistics and energy projects but will also
consider investments in industry, mining, agribusiness and
"The cooperation fund will not operate as an investment fund
with set resources. It will be an agreement between Claifund
and the Brazilian government that, in practice, will operate as
a mechanism for screening projects," BNDES said in a
A six-member committee with representatives from Claifund
and the Brazilian banks will review submissions for financing,
BNDES said. Chinese companies or Chinese goods do not have to
be part of a project to receive financing, the bank added.
"This way, investment projects in Brazil will be able to
count on financing sources with more attractive conditions than
currently offered in the Brazilian market through a commitment
from Brazilian financiers for just 25% of the total resources
necessary for the projects," BNDES said.
Claifund bought a third of China Three Gorges' assets in
Brazil in January this year, after the Chinese power company
acquired Duke Energy's operations in the country for $947m.
Claifund has also earmarked investments in the Porto Sul port
project, the Ferrovia de Integracao Oeste-Leste (FIOL)
railroad and the state-owned mining company Bahia Mineracao.