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					The Brazilian Development Bank

JULY 14 th, 2010


Denise Andrade Rodrigues
President’s Adviser
BNDES Highlights


 Founded on June 20th, 1952
 100% state-owned company under private law
 Support to micro, small and medium-sized companies
 Main provider of long-term financing in Brazil
 Emphasis on financing investment projects
 Brazilian Export Bank
 Equity investor through BNDESPAR
       Mission and Vision
Mission
To foster sustainable and competitive development in the Brazilian
economy, generating employment and reducing social and regional
inequalities.

Vision
To be the development bank of Brazil,
innovative, outstanding, and to proactively tackle the the current
and relevant challenges of our society.
Investment outlook: positive prospects
                                                   Forecast of Investment Ratio 2009-2012 (% of GDP)
                                        22.0                                                           21.2
                                        21.0                                                    20.2
                                                                              Forecast
                                        20.0                           19.0
                                                                                         18.6
                                        19.0
                                                        17.6
                                        18.0
                                                                              16.7
                                        17.016.4
                                        16.0
                                                   Source: BNDES Forecast
                                        15.0

     Investment – BNDES                    2006         2007           2008   2009       2010   2011   2012

      Forecast (R$ Billion)
  Sector               ’05-’08   ’10-   Growth
                                  ’13
  Oil and Gas             156    295                             89%
  Mining                    53    52                - 3%

  Siderurgy                 28    44                       59%
  Automotive                23    32                    41%

  Electroelectronics        15    21                       42%

                                                     13%
  Paper and Pulp            17    19
    BNDES
                                                            BNDES’ disbursements (US$ billion)    68,7

 BNDES played an important role during the                                                 49,6
crisis, increasing in almost 50% (R$) its annual
       disbursement with resilience and                                             33,3
                 sustainability                                             23,6
                                                                    19,3
                                                     10,9   13,6



                                                     2003   2004    2005    2006   2007    2008   2009
        BNDES’ Net Income     (US$ billion)

                            3.7               3.9

                   2.9                  2.9            Excellent funding
                                                       Suitable profitability
           1.3
                                                       Good asset quality indicators
  0.5


 2004     2005    2006     2007       2008    2009
Areas of Activity

Innovation
To support investments promoting technological innovation and
competitiveness.
Infrastructure
Access to electric energy, telecommunications, urban transport, water supply
and sanitation, increasing the offer of services ahead of demand to avoid harm
to economic growth.
Productive structure
To increase industry production capacity. To make industry and service sectors
more effective. To prioritize small and medium-sized companies. To support
international business of Brazilian companies.
Exports
To promote external sales and reduce imports. Technological investments to
increase content value of consumer goods. Preferential trade relations with
Mercosur and other South-American neighbors.
Social inclusion
Conditions and stimuli to intensify social benefits are established for the
concession of BNDES credit.
BNDES Support
              Disbursements by Business Sector (%)



 8%      5%         5%        7%
                    9%                  12%      12%      14%
        17%                   7%
14%                                     8%       6%       5%

                    36%       33%
30%                                     40%      39%      35%
        38%



48%                 50%       53%
        40%                             40%      43%      46%




2003    2004       2005      2006      2007      2008     2009
 Indutry                             Infrastructure
 Farming and Cattle Raising          Trade and Services
BNDES vs. Multilateral Banks

US$ millon                      BNDES                IDB          IBRD              CAF      China DB
                              Dec 31, 2009 Dec 31, 2009 Jun 30, 2009* Dec 31, 2009 Dec 31, 2008
Total Assets                     222,050             84,006       275,420           15,887    545,886
Shareholders' Equity               15,867            20,674        40,037            5,287     49,786
Net Income                           3,868                 794      3,114             235       2,971
Loan Disbursements                 78,910            11,424        18,564            4,584    167,244
Total Loans                      162,917             58,049       105,698           11,687    414,086
Capitalization                         7.1%            24.6%        14.5%            31.9%       9.1%
ROA                                    2.3%                1.0%       2.4%            2.4%       0.6%
ROE                                  29.0%                 4.0%       8.0%            4.7%       6.0%
Founded                                1952                1959       1945            1968       1994
    IDB = Inter-American Development Bank
    IBRD = The International Bank for Reconstruction and Development (World Bank)
          (*) Unlike other institutions, 12-month fiscal year ends June 30th
    CAF = Corporación Andina de Fomento
    CDB = China Development Bank
    Capitalization = Shareholders’ Equity / Total Assets
    ROA = Return On average Assets
    ROE = Return On average Equity
Clients


The BNDES’ clients are:
1) Private individuals, domiciled and residing in Brazil;

2) Legal entities under Brazilian law (national or foreign control),
   established with head office and administration in Brazil;

3) Direct and Indirect Public Administration in the Federal, State,
   Municipal and Federal District areas.




 The financial support lines and programs offered by the BNDES serve the
 investment needs of companies of any size and sector that have been set up in
 the country. Partnerships with financial institutions that have agencies
 established around the country facilitate the dissemination of credit, enabling
 micro, small, medium-sized enterprises to access the BNDES’ resources.
Main Credit Lines


Financing of:
• Complete business projects
• Export of goods and services
• Machinery and equipment


Equity Investment
• Stocks and debentures
• Venture Capital
• Seed Capital Funds
• Private Equity Funds
How we work
      BNDES: Financing + Equity
                                                                                                    Capital
     Equity, Funds and Capitalization                                                               Market
                                                          Private
                                                          Equity
                                         Venture          Funds
                                         Capital
                         Angel
Equity




                                          Funds
                       Investors
                                                                                       Stocks and
                                                                                       Debentures
                                                                            IPO




+
                                       Lines, Products and Programs
                 Business Enterprise                                Machinery and       Micro, Small and
                                         Industrial Projects
Financing




                      Projects                                       equipment         Medium Enterprises
                                                                                          Environmental
                     Innovation               Exports               Social Inclusion
                                                                                          Responsibility
                 Industry Programs
                                              FUNTEC                       …                    …
                   (e.g.: PROTVD)
 How we work


    Direct Operations         Indirect Operations
     Companies financed   Companies financed through an
      directly by BNDES    accredited financial institution




ENTERPRISE

                                                   Information
                                                  & Relationship

                              Accredited
                          Financial Institution




                                           ENTERPRISE
How we work – Direct Operations



                   Direct Operations




      ENTERPRISE
BNDES’ Interest rate - Direct Operation

                                      Funding Cost
                                      • TJLP
          Financial Cost              • TJ-462
                                      • Currency Basket
                +                     • LIBOR

                                          Margin to cover
       BNDES Basic Spread                 operational expenses
                                          0.0 – 2.5% p.a.
                +
                                          Margin to cover
          Credit Risk Rate                non-performing loans
                                          0.0 – 3.57% p.a.
                =
        Total Interest Rate
  TJLP Long-Term Interest Rate*

9.75           9.75                                                              TJLP % p. a.
                      9.00
                                                                                 IPCA (% annual inflation)
                             8.15
   7.6                              7.5
                                          6.85
                                                 6.5     6.5
                                                               6.25                  6.25
                                                                                            6.0          6.0
                         5.7
                                                                                   5.9


                                                                      4.5                              4.3



                                                       3.1




 Jan Apr July Oct Jan Apr July Oct Jan Apr July Oct Jan Apr July Oct Jan Apr July Oct Jan Apr
2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010


         TJLP is set each quarter by National Monetary Council
         IPCA is a Consumer Price Index produced by IBGE
Direct Operations - Lines of Financing


• BNDES Finem- investment projects
  (minimum value of R$ 10 million ~= US$ US$ 5 million)

• Credit Limit - revolving credit for BNDES clients 5 years or more with
  good record and credit risk ranking


• Subscription of Securities - underwriting of securities in publicly-
  listed companies

• Internationalization of Enterprises - support to investments or
  projects to be performed abroad

• Project Finance - credit to a Specific Purpose Company created to
  segregate project cash flow, equity and risk
Direct Operations - FINEM




               Industries              Stadiums




Power Plants                Oil Rigs
How we work


                           Indirect Operations
Companies financed through a network of financial institutions, accredited
by the BNDES, which are responsible for the analysis and credit approval.




              Accredited
          Financial Institution




                                             ENTERPRISE
BNDES’ Interest rate
(Indirect Operation)
                                   Funding Cost
           Financial Cost          • TJLP
                                   • TJ-462
                                   • Currency Basket
                 +                 • LIBOR

                                   Margin to cover
           BNDES Spread            operational expenses
                                   0.0 – 2.5% p.a.
                 +                 Financial Institutions
    Financial Intermediation Tax   Systemic Risk
                                   0.0 – 0.5% p.a.

                 +
                                   (SMEs Exempt)

                                   Determined by the
    Financial Institution Spread   accredited financial
                                   institution

                  =
        Total Interest Rate
Indirect Operation – Lines of Financing

• BNDES Automatic
 (investment projects under R$ 10 million)

• BNDES Finame
 (capital goods production and trade)

• BNDES Agricultural Finame
 (agricultural machinery and equipment production and trade)

• BNDES Leasing Finame
 (leasing of capital goods)

• BNDES Export
 (production of goods and services made in Brazil to be exported)

• BNDES Card
 (revolving, pre-approved credit for the acquisition of products accredited by BNDES)
Export Support - Credit Lines


• Pre-Shipment: financing for the production of goods
  earmarked for export, linked to specific shipments, or to the
  increase of the company’s total exports



• Post-Shipment (buyer or supplier credit): financing for the
  commercialization of goods and services in foreign countries
Disbursements
 2009 Operations


         Number of Operations                             Disbursements

                  390,729                               US$ 71,590 millions

          112,997                                45,558
           29%                                    64%
                                      23,711                                            Petrobras
28,725                                 6%                                                13,026
 7%                                                                                       18%




                       225,296
                        58%                                                             547 1%
                                                  2,632                      6,055
                                                   4%          3,776
                                                                              8%
                                                                5%

         individuals       micro and small     medium         large             other


                                                   Exchanged to US dollar on disbursement date
 Disbursements to Finance Exports

           US$ million                                                                      8.309



                                                                    6.376           6.595
                                                        5.862


                        3.948         4.007

        3.083                                                               4.190
                                                3.861

                2.603
2.100



1999    2000     2001      2002       2003       2004        2005   2006    2007     2008   2009
          Converted to US dollar on the disbursement dates
   BNDES ProCopa Programs


Arenas

Up to US$ 2.7 billion to build and remodel stadiums and

  urbanization investments in surrounding areas.

Tourism

Up to US$ 556 million to build, remodel, expand and

  modernize hotels.

US$/R$ = 1.80
   Challenges for infrastructure
Belo Monte Hydroelectric Plant and, afterwards, Tapajós;

Railways, roads and ports;

2014 World Cup;

PAC - Urban Transport;

2016 World Olympics;

High-speed Train (TAV);

Environmentally sustainable projects and concern for

 surrounding areas.
                      Thank you!

Brazilian Development Bank - BNDES
International Division

To contact us:
www.bndes.gov.br/english/

				
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