Oct 14, 2014

The Brazilian Development Bank (BNDES) obtained a five year US$ 100 million loan from the  Swedish Export Credit Corporation (SEK). SEK is a Swedish financial institution that provides sustainable financial solutions for Swedish exporters.

The contract was signed in Washington on October 11th, in the occasion of the 2014 Annual Meetings of the International Monetary Fund and the World Bank Group.

Resources are to be earmarked, but not limited to, for investment projects in Brazil of interest to both countries, including subsidiaries and suppliers to Swedish companies, as well as joint ventures between firms from both nations.

There are over 200 Swedish subsidiaries in Brasil with approximately USD 50 billion in sales between them. The market size and potential attract a continuous flow of new Swedish companies and encourage already established companies to look for new ways to grow on the market and the ambition is that this agreement will facilitate this development. This loan finance business with swedish interest in Brasil.

This is the first operation between the BNDES and the SEK. It is in accordance with the BNDESs strategy to attract foreign investments to Brazil, besides diversifying markets and the sources of capital. The loan from SEK will play an important role in boosting the amount of Swedish resources in projects in Brazil, and the accord paves the way for new operations between the two institutions.

The SEK, founded in 1962, is a Swedish state-owned company that provides sustainable financial solutions for swedish exporters. Currently, it has a credit portfolio of US$ 33.2 billion and assets of US$ 46.8 billion. SEK’s mission is to ensure access to financial solutions for the Swedish export industry on commercial terms. SEK’s aim is to provide an advantage and security for our clients through our complementary role to and in partnership with banks. SEK has high creditworthiness and strong ratings owing to its extensive experience of controlled risk exposure, its solid balance sheet and a stable owner in the Swedish government.

The BNDES has maintained partnerships with governmental agencies and multilateral support institutions since the 1950s, aimed at expanding sources of financing and diversifying operations with international organisms.

In the first half of this year, the Bank took out two loans in the amount of US$ 800 million with Japanese banks, namely the Japan Bank for International Cooperation (JBIC), Mizuho Bank, Ltd and the Bank of Tokyo-Mitsubishi UFJ (BTMU).

In July, another loan to the tune of US$ 335 million was signed with the German development bank, KfW Entwicklungsbank.

Over the last weekend, in Washington, the BNDES signed a memorandum of understanding (MoU) with Tokyo-Mitsubishi aimed at collaborating to create sources of resources to finance projects of interest to both countries.

On that occasion, another MoU was also signed with Cassa Depositi e Prestiti S.p.A, an institution of the Italian government which works towards boosting the development of infrastructure and which is one of the main support instruments for the Italian economy and its companies. The aim of the MoU is to foster cooperation between the institutions and to assess the possibility of supporting investment projects of mutual interest, while respecting the operational policies of each party.