ANNOUNCEMENT 12 Apr 2021

The National Bank for Economic and Social Development of Brazil (i.e. BNDES by its acronym in Portuguese) approved a loan of BRL 330 million to support Tereos Açúcar e Energia Brasil SA. 

 

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 12 Apr 2021 | Removal date: open ended

State loan

On 12 April 2021, the BNDES approved a BRL 330 million loan (over USD 57.9 million at the time of the announcement) to support the upgrade of the operational units of Tereos Açúcar e Energia Brasil. The resources were provided by the bank via the credit line FINAME Direto.

According to the BNDES, "Finame Direto was a product thought to be a financing alternative for the acquisition of machinery, equipment and materials, in a more flexible and more agile way, offering, therefore, a better experience for customers with lower transaction costs.”

Tereos Açúcar e Energia Brasil is a sugar and ethanol producer located in the Northwest of the State of São Paulo that has a processing capacity of 23 million tons of sugarcane. It also supplies electricity to the national grid that results from sugarcane bagasse.

Notably, the announcement also referred to another loan granted to Usina Vertente Ltda, however, the amount granted does not meet the GTA's minimum reporting criteria. 

 

FINAME Direto funding
The FINAME funding requires that all capital goods that are to be purchased with the resources provided by this loan contain at least 30% local content (please, see related state act).
 
Under this credit line, beneficiaries can purchase capital goods and manufacturing equipment, special machinery related to industry 4.0, energy efficiency equipment from a list of options provided by the bank. 
 
The loans provided under this scheme count with a bonified interest rate and a 9-year repayment period.  

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 12 Apr 2021 | Removal date: open ended

Local sourcing

The BRL 330 million loan (over USD 57.9 million at the time of the announcement) approved to Tereos Açúcar e Energia Brasil by the BNDES on 12 April 2021, was distributed via FINAME Direto, one of the credit lines from the FINAME credit scheme, that seeks to promote the acquisition of nationally manufactured capital goods. 

The list of capital goods that can be purchased via this funding is disclosed at the website of BNDES and includes specialized agricultural machinery, renewable energy and energy efficiency-related machinery and other specialized machinery, as well as certain industrial inputs such as coke, paper, inorganic chemicals, woods, certain yarns, certain metals and certain medical appliances. 

According to the BNDES, "Finame Direto was a product designed to be a financing alternative for the acquisition of machinery, equipment and materials, in a more flexible and agile way, thus offering a better experience for customers with a lower transaction cost". 

The FINAME funding requires that all capital goods that are to be purchased with the resources provided by this funding contain at least 30% local content (please, see related state act).

 
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