EIB visit to broaden activity in Brazil

Brazil is the main Latin American beneficiary country of EIB loans for investment in productive activities and the largest recipient of EU foreign direct investment in the region. The EIB has so far extended 24 loans totalling EUR 1.4 billion, representing some 48% of its entire activity in Latin America. The diversified portfolio of EIB financing operations in Brazil directly supports private sector investment. Among the main investments supported are those of Vivo, Continental, Michelin, Pirelli, TIM, Telefónica, Itaú-BBA, Volkswagen, Mercedes and Veracel, as well as the Bolivia-Brazil gas pipeline.

A high-level delegation from the European Investment Bank (EIB) will be visiting Brazil during the coming week to discuss ways to broaden the Bank’s activity in this country. The EIB delegation will meet with Brazilian authorities at both federal and state level and with the national development Bank, BNDES, to identify and discuss new financing opportunities, with a particular focus on environmental sustainability and economic development.

Under its current mandate, covering the period 2007-2013, the EIB has been asked by the EU Council to lend up to 2.8 billion euros in Latin America for financing operations supporting EU cooperation strategies and complementing other EU development and cooperation programmes and instruments in the region. An additional EUR 3.0 billion is available for financing energy security and sustainability projects in investment-grade countries, including those in Latin America, over the same period.

In Brazil, the EIB offers medium and long-term loans. EIB loans are project-linked, with the emphasis on financing the long-term components of an investment. Typical direct loans range between 50 - 200 million American Dollars. For smaller projects the EIB can lend indirectly through credit lines extended to local financial institutions or commercial banks for allocations between 0.5 - 12.5 million euros.

What is the EIB?

The EIB is the European Union’s long-term financing institution. In 2007, the EIB provided loans totalling some EUR 48 billion. The Bank borrows the funds for its lending on the capital markets. Its bonds have regularly been rated "AAA" by the leading rating agencies.