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BNDES expects to double disbursements by 2022

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BNDES expects to double disbursements by 2022

Banco Nacional de Desenvolvimento Econômico e Social expects to double its total annual disbursements over the next few years, with plans to hit 150 billion Brazilian reais by 2022, Valor Econômico reported, citing CEO Paulo Rabello de Castro.

The forecast is part of the strategic planning that the bank will announce early next year, probably in February, Rabello said at an event. The amount would be attained through market demand and funding from the development bank, the executive added.

Funding would be sourced from new BNDES debt, securitizations and the sale of the shares of the bank's unit, BNDESPAR, the report said. Rabello said the share offering from BNDESPAR will be also be announced in early 2018, Reuters reported.

Rabello did not specify securities of companies that could be up for sale, noting that this could spur instability in the price of the assets.

"The sale will be weighted around two or three basic parameters, being the degree of maturity of the investment and also the opportunity of the sale with a view to the quotations. Another parameter is to give more access to investors in these companies," he said.

The targeted disbursement amount for 2022 would represent about double the development bank's expected total for 2017. Rabello recently admitted that BNDES would not reach its full-year disbursement goal of 77 billion reais and was more likely to end at about 72 billion reais after seeing a 20% drop in the first 10 months of 2017.

As of Dec. 6, US$1 was equivalent to 3.24 Brazilian reais.