BNDES Launches World Cup Loan Programs

Brazil development bank BNDES presented its BRL1bn ProCopa Turismo financing program to hoteliers. The program will offer financing for renovation projects and construction of new tourism facilities. The loans will have terms of up to 12 years for renovation projects and up to 18 years for the construction of new facilities. Margins will include a fixed-rate base spread that ranges from 6.9%-8.8% plus a credit spread. BNDES is also launching the ProArenas program, will make available BRL4.8bn to finance up to 75% of the construction of stadiums and other urban infrastructure. Each project will have access to loans of up to BRL400m that bear interest rates of TJLP plus the 0.9% BNDES spread plus a borrower-specific credit spread. Tenors can be up to 15 years with 3-year grace periods.