BNDES, the Brazilian state-run development bank, will invest as much as US$200mn in Corporacin Andina de Fomento (CAF), the Venezuelan-based multilateral bank, says Armando Mariante, vice-president of BNDES.

BNDES and CAF will jointly finance infrastructure projects in South America, he adds.

BNDES will start raising its share in CAF’s capital as soon as the first project to be co-financed is chosen by the two institutions.

“CAF is an extremely interesting agency with very low risk and good governance,” Mariante remarks.

BNDES approved the US$200mn investment following a meeting between the two institutions in which “the level of understanding was unprecedented”, says Mariante. “This can make all the difference to South America.”

By financing Brazilian exports of goods and services as demanded in infrastructure, BNDES fulfils its role of Brazil’s development bank and regional lender, Mariante adds.

Colombia, Peru and Venezuela own 75% of CAF’s US$1.68bn of subscribed paid-in capital, according to its website. Brazil holds about 3%.