Jan 29, 2019

The total approved for new financing last year was R$ 94.9 billion. Disbursements in the period were R$ 69.3 billion

Approvals of new financing by the Brazilian Development Bank (BNDES) increased 27% between January and December 2018, if compared to the same period in 2017, and totaled R$ 94.9 billion. In the period, disbursements were R$ 69.3 billion (−2%), and consultations (the first stage of an application for financing at the Bank) were stable at R$ 98.8 billion. 

The infrastructure sector stood out among the approvals in 2018, with a performance 60% higher than that observed in 2017 and a total of R$ 47.6 billion, just over 50% of approvals in the year. The following are the agricultural and industrial sectors, whose approvals grew 10% and 5% respectively when compared to 2017, and then the commerce and services sector, that varied −3% compared to last year.

Disbursements – Of the R$ 69.3 billion released by BNDES between January and December 2018, R$ 30.4 billion (43.9% of the total disbursed) went to infrastructure investments, a 13% growth compared to 2017. The agricultural sector follows it, with R$ 14.7 billion (21.2% of the total disbursed) and a growth of 2% when compared to the previous year.

Disbursements for the industrial, commercial and services segments corresponded to R$ 12.3 billion (17.8% of the total) and R$ 11.9 billion (17.2% of the total), respectively – in both cases, a reduction of 18% considering the previous year.

Regions – In 2018, the Midwest registered the highest percentage growth in BNDES disbursements. R$ 9.4 billion were released for the region,  12% higher than in 2017. The number corresponds to 13.5% of the total released by BNDES in 2018. 

Approvals for new operations grew 70%, reaching R$ 12 billion, mainly influenced by the approval of the financing for the transmission system that will connect the Converter Stations Xingu (PA) to the Terminal Rio (RJ) for outflow of the energy generated by the Belo Monte Hydroelectric Power Plant.

For the other regions of the country, the disbursements of the Bank were distributed as follows: the Southeast received R$ 26.5 billion (38.2% of the total); the South, R$ 17.96 billion (25.9%); the Northeast, R$ 11.9 billion (17.2%); and the North, R$ 3.5 billion (5.1%). Compared to 2017, releases to the South and Southeast remained stable, at 1% and −1%, respectively. For the North and Northeast, the variations were −8% and −16%.

Approvals for the North, South and Southeast regions, in turn, had the following increases compared to the previous year: 270%, 29% and 17%, respectively. As for the Northeast, after a 70% growth in 2017, compared to 2016, approvals varied by −9%. 

MSMEs – Micro, small and medium-sized enterprises (MSME) received R$ 30.1 billion, or 44.7% of the total disbursed by BNDES in 2018. The percentage for the segment is the highest recorded in the Bank's historical series, and the amount corresponds to an increase of 4% compared to that observed in 2017.

Capital Markets – In 2018, through BNDESPAR, BNDES invested R$ 412 million in credit funds, with a multiplier effect of 3 – that is: for every million of BNDES, R$ 3 million was invested by other investors. 

The Bank's role as an investor in this type of fund, together with private investors and development financial institutions, aims to stimulate the segment and increase the access of infrastructure projects and small and medium-sized enterprises to other forms of financing via capital markets.

More on the site – The BNDES Performance Bulletin is available on the Bank's website.