Pátria Investimentos Launches Pátria Infra Crédito FIDC Infrastructure Credit Fund
Pátria Investimentos, an asset manager based in Brazil, has announced the launch of a new infrastructure credit fund called Pátria Infra Crédito FIDC. The fund aims to support projects in various sectors including energy, water, logistics and transportation, urban mobility, telecoms, and public lighting in Brazil.
Funding and Investments
Pátria Infra Crédito FIDC has already raised 1 billion reais (US$200 million) with contributions from Brazilian development bank BNDES, Latin American development bank CAF, the IFC (a member of the World Bank), and other institutional investors. The long-term fundraising goal of the fund is up to 5 billion reais, primarily from institutional investors.
Brazilian Infrastructure Investment Gap
According to a World Bank study, Brazil’s infrastructure investment gap is expected to reach close to US$800 billion by 2022. The infrastructure and basic industries association Abdib projects that the Brazilian infrastructure sector will require 235 billion reais in investments in 2024 alone.
Purpose of the Fund
Alexandre Coutinho, investment director and senior portfolio manager at Pátria Investimentos, stated that the purpose of the fund is to provide credit to competent players in the market to bridge the investment gap. The fund will explore a variety of energy sources to meet the country’s energy needs.
Focus on Renewable Energy
BNDES plans to contribute up to 500 million reais to the fund, focusing on renewable energies and offshore wind projects to achieve carbon neutrality. The fund will primarily focus on non-recourse project finance, with initial amounts between 50 million reais and 100 million reais available per project.
Importance of Private and Development Banking
Carlos Pinto, IFC’s country manager, and Jorge Arbache, CAF’s vice president for the private sector, emphasized the important role of private and development banking in addressing Brazil’s infrastructure funding needs.
Other Initiatives by Pátria Investimentos
In addition to Pátria Infra Crédito FIDC, Pátria Investimentos is also raising funds for its Infraestrutura V fund, which aims to make equity investments in infrastructure development projects across various sectors.
Pátria Investimentos currently manages approximately 140 billion reais in assets and has a global presence with offices across four continents.
Analyst comment
Positive news: Pátria Investimentos has launched a new infrastructure credit fund, Pátria Infra Crédito FIDC, to support projects in various sectors in Brazil. It has already raised 1 billion reais and aims to raise up to 5 billion reais. This fund will bridge Brazil’s infrastructure investment gap, which is expected to reach close to US$800 billion by 2022. The fund will focus on non-recourse project finance and explore various energy sources. Pátria Investimentos is also raising funds for its equity investment fund, Infraestrutura V, which will cover various sectors. Market outlook: The launch of these funds will attract institutional investors and address Brazil’s infrastructure funding needs, positively impacting the market.
