This is a machine translation of the BNDES release originally published in Portuguese.
The National Bank for Economic and Social Development (BNDES) concluded its first coordination of a public offering for the issuance of debentures. The operation – carried out on behalf of RDVE Subholding, a company of the Casa dos Ventos group – for R$ 430 million, aims to raise funds for the completion of four of the eight wind farms that make up the expansion of the Rio do Vento Wind Complex, in João Câmara, Rio Grande do Norte. With the expansion, 534.2 MW of installed generation capacity will be added, enough energy to supply 1.33 million households. Of this total, 268.6 MW will be financed through infrastructure debentures offered and financing by BNB, for R$ 600 million.
In addition to structuring the placement of debentures, as coordinator of the issue – in a syndicate with BTG Pactual (leader) and Itaú BBA – BNDES offered a firm guarantee for the placement of R$ 86 million, corresponding to 20% of the volume of the offering of public debentures. The other coordinators guaranteed the rest of the volume.
The debentures have a maturity of 16 years and are included in the tax incentives of Law 12,431/2011. BNDES’ Finance Director Lourenço Tigre said the initiative is another step by the institution in establishing itself as a service bank for the public and private sectors, going beyond the traditional offer of credit. As a result, it not only expands its scope of action, but also strengthens its role as a stimulator of investment for the Brazilian economy. “The bank needs to develop the best way to allocate capital and manage risk,” stated the executive.
Debentures – The operation was made possible by BNDES Serviços Coordenação em Ofertas Públicas, a product approved by the Bank at the end of December 2021. BNDES already has a history of acting as an investor through private securities and in 2021 carried out two infrastructure debenture structurings as a pilot and not as a coordinator. On that occasion, it contributed to the debenture offering of R$ 1.8 billion on behalf of Gás Natural Açu (GNA). The funds were allocated to the GNA I natural gas thermal power plant, in Porto de Açu, in São João da Barra, in the north of Rio de Janeiro state. BNDES also structured the issuance of debentures by Holding do Araguaia (controller of Ecovias do Araguaia, which will develop the BR-153 concession), which issued R$ 1.4 billion in debentures.
As the coordinator of public offerings, the Bank contributes with its capacity to structure infrastructure projects and helps to make placements viable by offering a firm guarantee.
The project – Scheduled to start commercially in September 2023, phase II of the Rio do Vento Wind Complex is located in the municipality of João Câmara. Together with phase I of the complex, it will total 1.38 GW of installed generation capacity. The total investment in the complex (including the two phases) totals R$ 2.6 billion.
About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the Federal Government’s main instrument to promote long-term investments in the Brazilian economy. Its actions focus on the socio-environmental and economic impact in Brazil. The Bank offers special conditions for micro, small and medium-sized companies, in addition to social investment lines, aimed at education and health, family farming, basic sanitation and urban transport. In crisis situations, the Bank acts in an anti-cyclical manner and helps to formulate solutions for the resumption of economic growth.
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