INFRASTRUCTURE. New Opportunities in Brazilian Market

Transcription

1 INFRASTRUCTURE New Opportunities in Brazilian Market

2 Agenda 1. BNDES Highlights 2. How we work 3. Opportunities in the New Concession Program 2

4 BNDES Highlights Founded on June 20th, % state-owned company under private law Key instrument for implementation of Federal Government s industrial and infrastructure policies Main provider of long-term financing in Brazil Emphasis on financing investment projects Support to micro, small and medium-sized companies Support to Export and Internationalization of Brazilian companies 4

5 Time Line 50 s 60 s 70 s 80 s 90 s 00 s Today Infrastructure Heavy Industry Consumer Goods Technological Development Imports Substitution Energy Agribusiness Privatization Program Exports Urban and Social Development Social Inclusion Innovation Sustainability Small Business 5

6 Relationship with other Government Agencies MDIC Ministry of Development, Industry and Foreign Trade MF Ministry of Finance National Monetary Council Central Bank of Brazil Securities Exchange Commission Federal Taxation Office National Treasury TCU Federal Court of Auditors Private Insurances Agency 6

7 Group Structure Finances long-term investments BNDESPAR FINAME BNDES PLC Equity Participation Machinery and Equipment Production and Acquisition Internationalization of Brazilian companies 7

8 Organizational Chart Auditing Advisory Board Credit Executive Secretary President s Office President Vice-President Project Development Legal Director 1 Director 2 Director 3 Director 4 Director 5 Director 6 Director 7 Infrastructure International Financial Capital Markets Social Inclusion Information Technology Planning Basic Inputs Foreign Trade Indirect Operations Venture Capital Agriculture Human Resources Risk Management Administration Industrial Environmental AGIR Project Economic Research 8

9 Annual Disbursements (R$ X US$) In R$ billion X US$ billion ,6 23, , ,0 71,6 96,3 82,3 78,7 88,1 69, R$ billion US$ billion 9

10 Assets In R$ billion 10

11 Net Profit In R$ billion 11

12 BNDES vs. Other Development Banks Indicators 2013 BNDES CDB KfW JFC Brazil China Germany Japan Assets (US$ billions) 363, ,3 619,7 260,4 Loan Portfolio (US$ billions) 263, ,3 528,8 222,8 Net Profit (US$ billions) 3,6 13,0 1,7 (2,9) Non-performing loans ratio (%) 0,01 0,48 0,13 2,98 Return on Assets (%) 1,01 1,02 0,27 (1,13) Return on Equity (%) 15,34 15,07 6,21 (6,84) Foundation Number of Employees

13 Agenda 1. BNDES Highlights 2. How we work 2.1 Infrastructure Financing 2.2 Capital Market - BNDESPAR 2.3 Project Structuring 3. Opportunities in the New Concession Program 13

15 Infrastructure Division Understanding BNDES structure BNDES Infrastructure Division comprises only part of the segments usually categorized as Infrastructure Industrial Division Telecommunication Social Infrastructure Division Urban mobility Infrastructure Division Electric Power Industry Oil and Gas Sanitation Renewable Energy Transportation and Logistics 15

16 Infrastructure Division Annual Disbursement Hydropower Thermal Nuclear Renewable Energy Distributors Transmission Railways Highways Ports Navigation Airports Other CAGR = 24,4% 16,017 15,280 18,743 R$ million 24,538 28,391 29,897 2,710 4,875 3,747 3,366 7,116 8, Annual growth + 80% - 23% - 10% + 111% + 21% + 85% - 5% + 23% + 31% + 16% + 5% 16

17 Disbursements in logistics Strong growth trend ,0 Warehouse Airport & Air Transport R$ billion CAGR: 16,3% ,0 Pipeline Navigation ,7 Port Road 11,4 Rail CAGR: 34,5% 9,0 7,5 3,6 3,9 5,1 0,4 0,6 0,9 0,9 1,9 1, * 2016* 2017* * forecast 17

18 Infrastructure Division Portfolio of projects R$ Thousands Eletric Power Industry Renewable Energy Transportation and Logistics Sector Number of Value of Total Projects Support investment Generation Transmission Distribution Subtotal Wind Power Cogeneration Small Hydro Subtotal Roadways Railways Ports Airports and Air transport Pipeline Transportation Shipping Industry Terminals & Warehouses Others Subtotal TOTAL Operations in disbursement and approved (66%), Analysis (27%) and in consultation phase (7%) 18

19 Framework conditions for infrastructure financing Appropriate risk allocation and a balanced structure of collaterals Economic and legal stability Non manageable risks assumed by the granting authority Grantor Detailed engineering information (reducing construction risk) Environmental licensing risk Developers Equity/ Mezzanine investors Attractive rate of return equity Concessionaire Users insurance debt Construction BNDES Banks Capital Market Adequate financing structure (appropriated terms and competitive rates) Strong demand Needs for quality of service 19

20 Standard project finance timeline Timeline Auction Contracts Signed/ Bridge Loan Approved LT Loan Approved Project Completion End of Concession Limited recourse Non-recourse Studies, project preparation, public consultation, approvals 3 to 6 months 6 to 12 months 30 months to 60 months to 30 years total Equity and Mezzanine Debt (Strategic & Financial Investors) & Other Banks Equity/Cashflow (20-30%) Bridge Loan Long Term Loan (35-70%) Financial Investors Infrastructure Bonds (10-35%) 20

21 Basic conditions for financing logistics BNDES Finem Grantor Direct operation: Financial cost TJLP Basic spread: 1,5% p.a.* Indirect operation (on lending): Financial cost TJLP Basic spread: 1,5% p.a.* Developers Equity/ Mezzanine investors Credit risk rate* * up to 2.87% pa in accordance with company's rating Financial intermed. 0,5% pa equity Concessionaire Users debt insurance Construction Financial agent s spread BNDES Banks Capital Market Term: up to 20 years Bridge Loan: Up to 30% of the Long Term debt Corporative or Bank collaterals Term: 18 months * 1,2% pa. for railways and waterways.

22 2015 enhanced financing conditions: all in costs can be reduced up to 200 bps TOLL ROADS without debenture with maximum debenture issued 35% up to 70% 35% 30% 25% 10% 35% 30% PORTS without debenture 25% up to50% 25% 20% 30% with maximum debenture issued 35% 10% 25% 30% Finem TJLP TJLP additional (Pro-Logistica) Finem Market Associate Debenture of Infrastructure Equity/ Cash Flow Finem Market Optional (others sources)

23 2015 enhanced financing conditions: all in costs can be reduced up to 200 bps AIRPORTS without debenture 15% 15% up to 30% 40% 30% with maximum debenture issued 35% 20% 15% 30% TOLL ROADS/AIRPORTS following rounds without debenture 7,5% 7,5% 7,5% 7,5% up to 30% 40% 30% with maximum debenture issued 47,5% 7,5% 7,5% 7,5% 30% Emissão mínima: 7,5% ou R$ 100 MM, o que for maior. Finem TJLP TJLP additional (Pro-Logistica) Finem Market Associate Debenture of Infrastructure Equity/ Cash Flow Finem Market Optional (others sources)

24 2015 enhanced financing conditions: all in costs can be reduced up to 200 bps RAILWAYS and WATERWAYS up to 70% 70% 30% PIPELINE and THIRD-PARTY LOGISTICS up to 50% 50% 20% 30% Finem TJLP TJLP additional (Pro-Logistica) Finem Market Associate Debenture of Infrastructure Equity/ Cash Flow Finem Market Optional (others sources)

25 BNDES credit enhancement conditions With bond issuance Shared guarantees Cross-default Amortization curve to be based on French Amortization System (Price Table) instead of Constant Amortization System. Increase of TJLP participation Liquidity support 25

26 Infrastructure financing Guarantees structure General Structure Loan Tenure Debt service account (3 installments) Pledge of the SPC s shares Pledge of receivables and rights (including any indemnity payment) Step in rights Pre-Completion Corporate Guarantee Bank Guarantee Equity Support Agreement Package of insurance Post-Completion Operational and Financial Covenants * Appropriate risk allocation allows a customized and balanced collateral structure 26

28 Capital Market The BNDESPAR plays a key role owing to: Its commitment to long-term projects. The size and quality of its portfolio. Its performance in moments of higher volatility in the market. Its capacity to attract other investors. Its focus on corporate governance. Its capacity to invest in all market sectors. 28

29 BNDESPAR Chain of Investment Private Equity Funds Capital Market Venture Capital Funds Criatec Fund Public Offerings Initial Public Offerings (IPO) 29

30 BNDESPAR Equity Portfolio by Sector On March, ,7% 2,7% 2,0% 9,5% 20,8% Portfolio US$ 21,3 billion 13,6% 16,8% 15,8% 16,1% Oil and Gas Pulp and Paper Food Electricity Mining Logistics IT Investiment Funds Others 30

31 BNDESPAR Equity Infrastructure Portfolio Sector Companies R$ million Energy Logistics AES Tiete e Eletropaulo (via Brasiliana), Eletrobras, Copel, CPFL, Cemig/AGC Energia, Light, Renova, Taesa, Equatorial, Odebrecht Energia, CEG and others Odebrecht Transport, Rumo (ex ALL) e Cosan Log, Ecorodovias and others % Portfolio ,2% ,7% Sanitation CAB Ambiental and others 330 0,5% Funds FIPs: Brasil Energia, Angra Infra-estrutura, Infra Brasil and others 786 1,1% Infra-structure Total ,6% Opportunities of coinvestment in long term projects in Brazil - partnership with BNDESPAR 31

32 Infrastructure Bonds Issues Sector Volume (R$ million) # Issues Roads Volume per sector Hydro Power Plants Railways Termhal Power Plants Transmission Lines Airports Gas Distribution Wind Power Plants Ports Small Hydro Power Pl Sanitation Total Source: Anbima(june, 2015) Issuance of Infrastructure bonds amounted to R$ 17,8 billion from 2010 to 2015 Main issuers were Roads, Hydro Generation and Railways Companies 32

33 Infrastructure Bonds portfolio Sector Companies Bonds - Public Offerings R$ million Energy Cemig, Taesa, Eecc, Svp, Saesa, Renova Eolica, Raizen and others Airports Guarulhos, Viracopos 481 Highways Rota das Bandeiras, Concessionária Auto Raposo Tavares, Autovias, Ecorodovias and others 407 Total BNDES acquired ~30% of infrastructure bonds in brazilian public offerings 33

34 Infrastructure Bonds Pipeline The projects pipeline for 2015/16 estimate 33 motivated operations, which totalize R$ 3,8 billions in bonds. Sector # Issues Estimate Volume (R$ Millions) Volume per sector Transmission Lines Wind Power Plants Aiports Roads Hydro Power Plants Ports Total Source: BNDES (march, 2015) 34

36 Project Structuring Process BNDES s Project Development Division is responsible for structuring projects of public concessions and PPPs for the Federal Government, States and Municipalities. The activity called "project structuring" is meant to be prior to project deployment and must not be confused with the traditional activity of BNDES financing to ventures. Project Structuring Procurement Procedure Execution Feasibility studies Technical/Engineering Environmental Financial modeling Preparation of tender documents Government and BNDES Market interaction Auction Contract signature Government (with BNDES support) Regulatory Monitoring Project Financing BNDES (Infrastructure & Social Division) 36

37 Mechanisms of Project Project Structuring Fund FEP Brazilian PSP Development Program Brazilian Project Structuring Company 37

38 Project Development Division Environment Assessment Project Structuring Procurement Phase Advisory Background in infrastructure structuring. BNDES team has been helping central and local governments to develop their Concessions and PPP projects in the last 8 years: Project Structuring Financial structuring solutions Legal and regulatory risk Procurement Procedures Market sounding Fostering possible partners to the SPC or future investors Sectorial studies developed: Exploration and production of Oil & Gas Aviation Sector Study / Restructuring of INFRAERO Bioceanic Railway Corridor Port Sector Study Urban Mobility (Florianópolis / SC) PDD Projects 35 structured (24 concluded) US$ 21.3 billion of estimated CAPEX 86% success rate Brazilian PPP Market Presentations 38

39 Project Development Division - Project Portfolio Basic Health Units Image Diagnostics Center Airports Concessions Forest Concessions Sewage and Water treatment Hospitals Highways Concessions Elementary and Infant-school 39 Education

41 Opportunities in Brazilian Concession Program Total estimated investments: R$ 198,4 bi R$ 69,2 bi R$ 66,1 bi // onwards R$ 129,2 bi R$ 86,4 bi R$ 37,4 bi R$ 8,5 bi

42 Expected timeline of opportunities in infrastructure Equity or Mezzanine Debt Toll roads Airports Ports Railways PIL 2012: 6 concessions recently granted still have huge investments to perform (BR 153, BR 163-MT, BR 060/153/262, BR 040, BR 163-MS, BR 050-MG/GO) 2 PIL 2015: first round of future bids will have 4 new concessions (public consultation starting soon) 3 PIL 2015: additional investments in 12 existing concessions (ammendment agreements) PIL 2015: second round of future bids might includes up to 11 toll roads (studies to be started through RFPs) Concessions granted: reestructuring and/or new investments to be done (Brasília, Natal, Viracopos, Guarulhos, Galeão e Confins) PIL 2015: 4 new concessions Salvador, Porto Alegre, Fortaleza and Florianópolis (studies to be started) PIL 2015: first block of new leases (future bids), private terminals or renewing of existing leases PIL 2015: second block of new leases (future bids) or private terminals PIL 2015: future bids for extension of North-South and new railways (grains transportation from Mato Grosso) 42

43 Expected timeline of opportunities in infrastructure Project bonds Toll roads Airports Ports Railways Existing concessions with investments to perform (Arteris concessions and 6 toll roads from PIL 2012) 2 PIL 2015: first round of future bids will have 4 new concessions (public consultation starting soon) 3 PIL 2015: additional investments in 12 existing concessions (ammendment agreements) 4 PIL 2015: second round of future bids might includes up to 11 toll roads (studies to be started through RFPs) 5 6 Concessions granted: new investments to be done (Galeão e Confins) PIL 2015: 4 new concessions Salvador, Porto Alegre, Fortaleza and Florianópolis (studies to be started) 7 8 PIL 2015: first block of new leases (future bids), private terminals or renewing of existing leases PIL 2015: second block of new leases (future bids) or private terminals 9 PIL 2015: additional investments to be done by existing railways concessions (Rumo-ALL and VLI) 43

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