2nd Infrastructure Forum: Investment opportunities in Brazil

By Leila Monteiro Lins

The Brazil Canada Chamber of Commerce (BCCC) is pleased to announce its 2nd Infrastructure Forum focused on investment opportunities in Brazil which will take place in Toronto on April 29th 2016. Infrastructure bottlenecks continue to be one of the main obstacles to growth, directly affecting productivity, market efficiency and trade balance. The estimate shortfall in global infrastructure debt and equity investment currently stands at some US$ 1 Trillion per year.

CHALLENGES

Brazil is facing unprecedented challenges in the infrastructure industry as President Dilma Rousseff struggles to pull the economy out of one of Brazil’s worst recessions and the country faces serious corruption scandals that are reshaping its institutions. Brazil’s economic crisis and further weakening of the Brazilian Real are creating incredible opportunities for M&A and investments in the Brazilian infrastructure industry. The Petrobras corruption scandal is opening up the Brazilian infrastructure market for foreign constructions companies and generating an immense amount of opportunities for foreign investors. A recent Financial Times article stated that private equity investors are also stepping up their commitments in the country; in the first half of the year, they invested US$3.2 billion, 20% more than in 2014; the same article also shows that the last time the Brazilian Real approached current levels of close to 3.9 to the dollar was in 2002, a moment often seen later as a once in a lifetime buying opportunity.

GREENFIELD INVESTMENT OPPORTUNITIES

There are also interesting greenfield investment opportunities in the Brazilian infrastructure industry. Brazil’s investments on infrastructure projects until 2018 will surpass R$ 1 trillion reais (over US$200 billion). On June 2015 President Rousseff announced a new infrastructure package worth almost US$65 billion, including plans to sell to private sector new concessions to build and operate more than 7,000km of roads, four large airports and a number of ports and railways.

During our First Infrastructure Forum Mr. Henrique Meirelles presented in 2011 an overview of the opportunities for Canadian companies in the Brazilian Infrastructure Industry in connection with the 2014 World Cup and the 2016 Olympic Games. Our 2nd Infrastructure Forum will showcase greenfield and brownfield projects in the Brazilian infrastructure industry and will explain how Canadian investors can better take advantage of existing opportunities, mitigate risks and proper structure investments into Brazil.

 

PROGRAM:

8:00 am

Registration and Networking Breakfast

8:45 am

Ambassador Pedro Fernando Brêtas Bastos

Brazilian Ambassador to Canada

9:00 am

Ambassador Rick Savone

Canadian Ambassador to Brazil

9:15 am

Brazil’s Economic and Political Outlook

9:45 am

Landscape and M&A Opportunities in the Brazilian Infrastructure Market

The Petrobras corruption scandal is implicating several major Brazilian construction companies that own and operate infrastructure assets in Brazil. Never in the Brazilian history so many executives and politicians have been involved in a major corruption scandal and kept in jail. As investigations unfold, some of those companies are facing difficult financial situations and are starting to implement complex corporate debt restructuring processes and to sell some of their assets, including concessions rights in the infrastructure industry, such as hydroelectric power plants, toll roads, ports, railways etc.

Panel 1 will explain the current landscape of the Brazilian construction and infrastructure industry, and Panel 2 will explain how these structural changes are affecting the market and how Canadian companies can take advantage of existing opportunities.

11:00 am

How to Mitigate Risks when Acquiring Assets and Projects Owned by Brazilian Construction Companies Involved in the Lava Jato Corruption Scandal

12:00 pm

Lunch – Keynote Panel
Anti-corruption & Compliance Laws in Brazil

2:00 pm

Greenfield Opportunities in the Brazilian Infrastructure Market

Despite the crises, Brazil remains one of the largest economies in the world and home of a strong domestic market, Brazil has announced several new infrastructure projects this year. For example, in the transport and energy sectors, Brazil will receive almost R$400 billion to modernize and expand airport, railways, highways and ports, as well as to develop new power plants and transmission lines. This panel will showcase the new Brazilian Government Greenfield and new concession rights that will be put for sale during the next couple of years and how Canadian companies are gearing up to take advantage of those opportunities.

3:30 pm

Equity and Debt Finance for Brazilian Infrastructure Projects

5:00 pm

Cocktail Reception and Networking

 

SERVICE:

When: April 29^th, 2016

Where: McCarthy Tetrault Toronto Office

66 Wellington St West, Suite 5300 – From 8:00 am to 5:30 pm

 

Registration: www.brazcanchamber.org/infraforum

Source: BCCC Team

Brazil-Canada Chamber of Commerce

info@brazcanchamber.org