The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil. Since its foundation, in 1952, BNDES has played a fundamental role in stimulating the expansion of the industry and infrastructure segments in the country. Over the course of the Bank’s history, its operations have evolved in accordance with the Brazilian socio-economic challenges, and now they include support for exports, innovation, sustainable socio-environmental development and the modernization of the Brazilian public administration.
The Bank offers several financial support mechanisms to Brazilian companies of all sizes, as well as public administration entities, enabling investments in most economic sectors. In any supported undertaking, from the analysis phase up to the monitoring, BNDES emphasizes three factors it considered strategic: innovation, local and socio-environmental development.
In the 21st century, BNDES aligns its operations with the reality of a globalized world, with economies deeply connected, intensifying its efforts to take on roles and duties that surpass the borders of Brazil, in compliance with the increasing international insertion of the country. Today, the Bank has offices in London, one of the most important financial centers on the planet, in Montevideo, considered the “capital” of the Mercosur trade bloc and head office for several regional organizations, and more recently an office was established in Johannesburg, in order to support the growing interest of Brazilian companies in a region that has been considered the last frontier of economic development. BNDES also finances the expansion of national companies far beyond the borders of the country and seeks to diversify its funding sources on the international market as well. In addition, the Bank has strengthened its efforts that that have been traditionally conducted, such as financing exports of Brazilian goods and services in projects carried out overseas and institutional fundraising through multilateral organizations, sharing experiences and promoting opportunities.
Therefore, with its extensive knowledge, a result of its long time experience allied with the technical capacity of its workforce, BNDES is an important partner for investors to be able to understand and access opportunities offered by the Brazilian economy. After intensively supporting Brazilian growth since it was created and financing important investments for the country, BNDES reaches a new operational level, also on a world scale, where it consolidates its role as a financing agent to the economic and social development of our country.
The Brazilian Development Bank Abroad
For more than 50 years, BNDES has been one of the driving forces behind the Brazilian development, offering several financial support mechanisms to companies, individuals and public administration entities. The growing importance of Brazil in the world scenario, coupled with the interdependence of the globalized world economies, has compelled BNDES to broaden its horizons and intensify its participation outside Brazil as well.
In fact, BNDES’ connection with the global market has existed for a very long time. The Bank pays full attention to exports from Brazil by fostering production and sale of locally-produced goods earmarked for foreign trade. In addition, BNDES supports the internationalization of Brazilian companies, aiming at increasing their competitiveness which, in turn, propels the global economy.
BNDES has other relations with the global market, for example, with multilateral organizations and development agencies, through which the Bank raises funds and finances projects of common interest. BNDES has also consolidated its funding on the international market by issuing bonds.
BNDES’ international operations to be successful required the development of new organizational structures, including the constitution of branches of the Bank outside Brazil. The following measures reflect the strategic nature of the BNDES’ international presence:
- In December 2013, an office in Johannesburg, South Africa, was established;
- In May 2010, BNDES created EXIM Brazil, its new subsidiary with exclusive dedication to the foreign trade sector;
- In November 2009, the Bank opened BNDES Limited, its subsidiary in London, United Kingdom, as an investment holding company;
- In August 2009, an office in Montevideo, Uruguay, was opened;
- In 2008, BNDES’ organizational structure underwent a change with the creation of the International Division, which is responsible for coordinating the implementation of activities connected to the Bank’s international operations, while still linked to other internal divisions.
With all these efforts, BNDES aims to consolidate the strength and competitiveness of the Brazilian economy within a fully connected world. With this, the Bank leverages its operations to a whole new level, where promoting Brazilian development involves an integrated view in a global context.
BNDES Key Figures 2015
|USD billion (except percentages)
|Loans, net of allowance/Total Assets
|Nonperforming loans/Total Loans