ANNOUNCEMENT 18 Jun 2018

The Brazilian government-funded Company of Innovation and Research (FINEP) has launched a new credit line to support IoT investments.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

FINEP. Imprensa. Todas as notícias. "Finep lança nesta terça-feira programa de R$ 1,5 bilhão para Internet das Coisas" 18/06/2018. Available at: http://www.finep.gov.br/noticias/todas-noticias/5690-finep-lanca-nesta-terca-feira-programa-de-r-1-5-bilhao-para-internet-das-coisas

FINEP. Apoio e Financiamento. Programas e Produtos. Finep IoT (Retrieved on 15/10/2019). Available at: http://www.finep.gov.br/apoio-e-financiamento-externa/programas-e-linhas/finep-iot

FINEP. A Finep. Fontes de recursos. Outras fontes. FUNTTEL - Fundo para o Desenvolvimento Tecnológico das Telecomunicações (Retrieved on 15/10/2019). Available at: http://www.finep.gov.br/a-finep-externo/fontes-de-recurso/outras-fontes/funttel-fundo-para-o-desenvolvimento-tecnologico-das-telecomunicacoes

Brazilian Company of Innovation and Research. Empresa Brasileira de Inovaçao e Pesquisa. Financiamento Reembolsável. Available at: http://finep.gov.br/component/content/article/120-apoio-e-financiamento/tipos-de-apoio/financiamento-reembolsavel/42-financiamento-reembolsavel

Inception date: 19 Jun 2018 | Removal date: open ended

State loan

On 18 June 2018, the FINEP has announced the launch of a new credit line to promote the Internet of Things called 'Action to Promote Innovation in Internet of Things - Finep IoT'.

The new scheme counts with BRL 1.5 billion (over USD 402.5 million at the time of the announcement), from which BRL 1.1 billion (circa USD 295.2 million) have been provided by the FINEP.

The scheme will provide loans to projects aligned with at least one of the following areas: development of digital solutions based on IoT; formulation of Business Strategic Plans for the digitization of production processes and their horizontal integration; and implementation of Business Strategic Plans to aim at the digitization of production processes of companies. 

The resources can be used for costs related to R&D investments, training, software acquisition, new machinery and equipment, as well as preparations related to mergers and acquisitions.  

The new credit line has been officially launched on 19 June 2018.

 
FINEP lending
The resources enclosed on the programs managed by FINEP are limited to Brazilian companies and seek to boost the national and international competitiveness of these businesses.

The interest rates set on the credit lines are composed of the long-term interest rate (TJLP) plus a supplement ranging between 1.5% and 7%, depending on the credit line and the repayment period.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 19 Jun 2018 | Removal date: open ended

State loan

In the announcement made on 18 June 2018 by the FINEP concerning the launch of the new BRL 1.5 billion credit line to promote the Internet of Things, the financial institution has stated that BRL 400 million (over USD 107.3 million) has been allocated by the Fund for the Technological Development of Telecommunications (i.e. FUNTTEL by its acronym in Portuguese) managed by the Ministry of Communications. 

The scheme will provide loans to projects related to the development and promotion of IoT in the Brazilian business environment and will allow beneficiaries to use it to cover costs related to R&D investments, training, software acquisition, new machinery and equipment, as well as preparations related to mergers and acquisitions.  

The new credit line has been officially launched on 19 June 2018.

 
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