Brazilian project finance grows over 400% in 2009

A report by Brazilian financial sector association ANBIMA says that the total volume of project finance activity grew by 431% last year, with energy representing the lion’s share of transactions.

ANBIMA, a Brazilian association of banks, asset managers and advisers, said in a recent report that project finance activity across Brazil grew by 431 percent in 2009.
Energy transactions represented the lion’s share (68 percent) of project finance activity followed by transports and logistics (13.6 percent), ANBIMA said. Within energy, the association pointed out hydroelectricity as a growth area in addition to renewable energy in general.
According to ANBIMA, Santander was the top provider of financial advisory services last year – having advised on R$7 billion (€2.9 billion, $3.97 billion) of deals – as well as the bank which structured the most deals (R$4.8 billion). Banco Brasil was the biggest lender of 2009 (R$2.7 billion) whereas Itau BBA was the number one financial adviser on concession contracts, having adivsed on R$3.89 billion of concession contracts, the association said.
Brazil will need to spend about $500 billion on critical infrastructure over the next five years as it prepares to host two of the world’s major sporting events, ratings agency Standard and Poor’s estimated in a recent report.
These critical upgrades will cover transportation, power plants, water treatment facilities, and, of course, sports venues in time for the 2014 football World Cup and the 2016 Summer Olympics, the ratings agency said.