Minister Giske Meets BNDES (presentations available)

By Ana Luisa Leite, Contributing Reporter

“Historically, relations between Brazil and Norway have been very harmonic and the future is extremely promising”, said Armando Mariante, Vice President of the Brazilian National Development Bank, BNDES, at the opening of the seminar “Financing Alternatives for International Cooperation and Fostering of New Business”, which took place at the bank’s auditorium in Rio de Janeiro’s downtown on February 18th.

The seminar was part of a three-day program, on the occasion of the visit of the Norwegian Minister of Trade and Industry, Trond Giske, who brought a business delegation of over 140 people to Rio, the largest group to ever accompany a trade minister.
Minister Trond Giske expressed his optimism regarding the great possibilities between Brazil and Norway: “We are sudden competitors in a global stage, we are filling each others’ gaps. We both have strong financial situations and expect a great future”.

The seminar was crowned by the signing of an agreement of cooperation between BNDES and the Norwegian Guarantee Institute for Exports Credit, or GIEK. “GIEK can become a great partner for us”, said Almir Barbassa, the Financial and Investor Relations Director of Petrobras. “Petrobras’ investment program reaches a total of R$ 240 billion. We still need to raise R$ 40 billion by the end of 2014,” he added.

In his speech, Executive Director of BNDES Wagner Bittencourt emphasized that the largest challenge today is sustainability, essential in any part of the business. The bank today supports the public and private sectors in direct and indirect forms.

“Good projects and a good management are concerns for BNDES,” says Bittencourt, who clarified the conditions for financing include credit, guarantees and return on investment. In 2010, 65% of BNDES’ financing went to support of large companies, while 35% went to small and medium companies. In 2010, the bank’s support for offshore vessels reached almost R$3 billion.

“A big challenge today is to develop goods and services suppliers in Brazil and to strengthen projects with local content,” affirmed BNDES Superintendent Roberto Zurli.
Constructions of offshore vessels with more than 60% of local content have preferred financing conditions, as Zurli confirmed.

Sérgio Weguelin, also Superintendent at BNDES, took the opportunity to speak about the ‘Amazon Fund’, an initiative supported by BNDES and by the Norwegian Government. The fund was created to assure the reduction of the high levels of deforestation, which were already decreasing. According to Weguelin, the initiative has already gone a long way.

“The idea is to bring a mindset change to Brazilian companies and society”, says Weguelin. As a way of stimulating companies, BNDES applies special credit support according to the company’s social-environmental profile, the so-called “green financing”.

The event also counted with speakers from Petrobras, DnBNOR and Eksportfinans, who described the companies’ prospects, as well as emphasized the importance of partnerships for long-term investments.

“We have Norwegian content submerged and on the sub-surface of the sea. Norway is also painting with blue, red and white its participation in the pre-salt. We wish to reproduce in Brazil the success that the petroleum industry developed in Norway,” said José Formigli, E&P Executive Manager for Pre-salt Development.

“Risk Sharing and Financing in Brazil” was the topic by Arne-Christian Haukeland, Senior Vice President of DnBNOR, who described financing alternatives for investments and trade finance with Brazil. It preceded a speech by GIEK President Wenche Nistad, who emphasized the importance of the Petrobras frame agreement of approximately R$ 2.5 billion for future transactions with combined Brazilian and Norwegian content.

At last, DNV finished the day, speaking on the importance of new technology risk assessment approaches through technology qualification processes, enabling stakeholders like manufacturers, end-users and financiers to have better control.

At the same time, on the same day, the Centro de Pesquisas e Desenvolvimento Leopoldo Américo Miguez de Mello, or CENPES, received part of the Norwegian business delegation for a seminar on “Brazil – Norway R&D and Technology Innovations”. With a busy schedule, Minister Giske continued to São Paulo, Belém do Pará and Brasilia.

Link to all presentations: Brazil – Norway Financing Alternatives for International Cooperation and Fostering of New Business