The Andean Development Corporation (CAF) has granted new lines of credit totalling US$350mn – with US$200mn in favour of Bradesco, and US$150mn for the Brazilian Development Bank (BNDES). These facilities increase the corporation’s support for Brazilian banks at an opportune moment following the expansion and growth of the country’s financial sector in recent years.
As CAF president and CEO Enrique Garca explains, ‘these approvals are part of CAF’s strategy aimed at playing a catalytic role in Latin America by providing support for financial institutions in the areas of foreign trade, working capital and investment in companies in low risk and high value-added sectors.” The banks will use the facilities to finance short and medium-term operations for their customers and as an alternative source for long-term funds.
BNDES is an important development bank with a recognised history of financing large projects of great importance for the Brazilian state in the implementation of its economic and social development plans. BNDES mainly finances projects, turnkey works, Brazilian manufactured machinery and foreign trade, and executes industrial support programs for various sectors of the economy.
Bradesco is one of the leading banks in the Brazilian private financial sector. It has been the largest private bank since 1951 and is leader in various segments such as corporate banking, private banking and services for micro, small and medium-sized enterprises. The institution also maintains a leading position in the insurance, leasing and capitalisation markets.