BRASILIA/RIO DE JANEIRO, April 15 Brazil's state
development bank BNDES plans to spend up to 3 billion
reais ($1.35 billion) buying stakes in buyout investment
vehicles and share offerings of mid-sized companies, to help
foster new funding sources in local capital markets, Valor
Econômico newspaper reported on Tuesday.
The program, which is expected to last two years, will be
carried out by BNDES's investment holding company BNDESPar,
Julio Ramundo, a senior vice president at BNDES, told Valor in
Under the plan, BNDESPar could buy no more than a 40 percent
stake in start-ups through initial public offerings whose
proceeds go entirely to the company, Valor reported.
Officials at BNDES's media office in Rio de Janeiro were not
immediately available to confirm Ramundo's comments to Valor.
Ramundo plans to unveil the plan at a private-equity industry
conference in Rio on Tuesday.
About 2 billion reais of the BNDES money could be funneled
into investment vehicles managed by private-equity and venture
capital firms in Brazil, with focus on technology, healthcare
and innovation activities that range from culture and
entertainment as well as videogames, Valor added. The bank wants
also to deploy part of that money into infrastructure project,
the paper said, citing Ramundo.
Currently, BNDES, which is considered as Brazil's biggest
source of long-term corporate loans, has about 2.5 billion reais
invested in 34 similar investment vehicles, known in Brazil as
"fundos de participações."
The remaining 1 billion reais is expected to go toward share
offerings of smaller companies in financial bourse BM&FBovespa
SA's Bovespa Mais listing chapter for companies with
small market capitalization, Valor added. BNDES could also
purchase shares of already-listed companies in the Bovespa Mais
segment to bolster liquidity, the newspaper added.
($1 = 2.21 Brazilian reais)
(Reporting by Silvio Cascione and Guillermo Parra-Bernal,
Editing by W Simon)