Infrastructure Bonds
Transcrição
Infrastructure Bonds
Ministry of Finance Economic Policy Secretariat Infrastructure Bonds May 2013 Secretaria de Política Econômica Secretaria de Política Econômica Funding Alternatives Private Banks Banking Syndicate Corporate Bonds? Infrastructure Project Development Banks Equity 2 Secretaria de Política Econômica Debentures: Average Maturities (Years) 6.3 6.1 5.0 5.2 2010 2011 4.0 2008 2009 2012 Source: ANBIMA . 3 Secretaria de Política Econômica Debentures Profile 93.0% 91.3% 4.9% DI Linked Inflation Linked Apr-12 Source: ANBIMA. 6.4% 0.1% 0.7% Fixed Rate 2.0% 1.6% Others Apr-13 4 Secretaria de Política Econômica Recent Developments in the Corporate Bond Market (Law 12,431/2011) Objective: • To create an alternative source of long-term funding for companies. Financial instruments: • Infrastructure Bonds: tax breaks (income tax and IOF) applies to both residents and non-residents (non-tax heaven ); • Capex Bonds: tax breaks (income tax and IOF) applies only to nonresidents (non-tax heaven ). 5 Secretaria de Política Econômica Infrastructure Bonds (main features) • Minimum duration: 4 years; • Fixed interest rate or inflation-linked; • Proceeds must be invested in infrastructure projects (may also be used to refinance outstanding debt, or to reimburse previous expenses incurred up to 24 months prior to the issuance); • Projects must be qualified as a "priority" by the respective line ministry. 6 Secretaria de Política Econômica Infrastructure and Capex Bonds (Fast Facts) 7 infrastructure bonds and 4 capex bonds have already been issued (total amount of BRL 5.6 billion). Pipeline: 25 infrastrucuture projects in energy and transportation already considered priority by the Government, with an estimated amount of BRL 62,8 billion in investment projects. Forecast: 10% to 20% of the funding should be provided by Infrastructure Bonds. 7 Secretaria de Política Econômica LAW 12,431 PROJECT BONDS (CAPEX and Infrastructure Bonds - Selected Issuances) Issuer Issue Value Maturity Date (R$ million) (years) Infrastructure² 15/8/2012 25 17 8.75% + IPCA³ CAPEX¹ 15/8/2012 100 12 7.89 + IPCA³ ALL – América Latina Logística Malha Norte S.A. Infrastructure² 25/9/2012 160 8 10.10% Railway Concessionária do Sistema AnhangueraBandeirantes S.A. (Autoban) Infrastructure² 15/10/2012 135 5 2.71% + IPCA³ Toll Road CAPEX¹ 15/12/2012 420 11 13,49% Shopping Malls Concessionária Auto Raposo Tavares S.A. (CART) Infrastructure² 15/12/2012 380 12 5.8% + IPCA³ Toll Road Santo Antônio Energia S.A. Infrastructure² 27/12/2012 420 10 6.20% + IPCA³ Interligação Elétrica do Madeira Infrastructure² 18/3/2013 350 12 5.50% + IPCA³ 7 3.80% + IPCA³ Concessionária Ecovias dos Imigrantes S.A. Infrastructure² 15/4/2013 881 Linhas de Transmissão de Montes Claros S.A. Rio Canoas Energia S.A. BR Malls Participações S.A. Bond Type Yield Sector Electric Power Transmission Line Hydroelectric Power Plants Hydroelectric Power Plants Electric Power Transmission Line Toll Road 11 4.28% + IPCA³ Sources: Anbima, CETIP, BNDES and line ministries. Elaborated by SPE/M F. 8 Secretaria de Política Econômica Development of Infrastructure Bonds Market BRL Million 2.000 1.600 AUTOBAN First issuance distributed to individuals (+ than 1,500) CART Distribution: First issuance distributed to both residents and non residents (23%) ECOVIAS Biggest issuance Demand 3 times higher than the offer Tenor: 12yrs Tenors: 7yrs and 11 yrs Yield: 5,80% + IPCA Yields: 3,80% + IPCA and 4,20% + IPCA Tenor: 5yrs 1.200 Yield: 2,71% + IPCA 881 800 400 380 135 0 October 15, 2012. Source: ANBIMA. December 15, 2012. Elaboration: MF/SPE. April 15, 2013. 9 Secretaria de Política Econômica CART - Infrastructure Bond Primary Market Secondary Market Ranking of the most traded corporate bonds: 1th Position 9th Position 43,34 % 29,48 % 11th Position 25,46% 380,0 114,6 168,5 99,0 December 15, 2012 Jan 2013 Feb 2013 Mar 2013 Issuance - BR$ Millions Trading Volume - BR$ Millions Turnover Ratio * * It is a measure of bond market liquidity that shows the extent of trading in the secondary market relative to the amount of bonds outstanding. Source: ANBIMA Elaboration: Economic Policy Secretariat Secretaria de Política Econômica Infrastructure Bonds (Guarantees for investors) Securities that qualify for tax relief are not guaranteed by the government; However, BNDES may share collateral pari passu with investors; Moreover, contracts may include cross-default provisions. If an issuer defaults on its bonds, BNDES can declare early maturity on that issuer’s debts, to the benefit of all bond investors. 11 Secretaria de Política Econômica Thank You! [email protected] 12