TLDR:
- Asset manager Pátria Investimentos launches new infrastructure credit fund in Brazil
- The fund aims to raise up to 5bn reais to support energy, water, logistics, and transportation projects
Financial players have joined forces in Brazil to support infrastructure projects through a new fund launched by asset manager Pátria Investimentos. The Pátria Infra Crédito FIDC has raised 1bn reais from BNDES, CAF, IFC, and other institutional investors, with a long-term goal of raising up to 5bn reais. The fund will focus on projects in sectors such as energy, water, logistics, transportation, urban mobility, telecoms, and public lighting in Brazil.
According to Abdib, Brazil’s infrastructure sector is expected to need 235bn reais in 2024, excluding oil and gas projects. The World Bank has identified a close to US$800bn investment gap in Brazil’s infrastructure in 2022. The new fund aims to provide long-term credit for small and medium-sized brown- and greenfield projects, especially in poorer regions that struggle to access traditional credit lines.
With a focus on renewable energies, including offshore wind, the fund aims to support projects that contribute to Brazil’s path towards carbon neutrality. The fund will offer non-recourse project finance, allowing for more flexibility in project structures without the need for traditional bank guarantees. By providing credit of 50mn reais to 100mn reais per project, the fund aims to reach projects that may have been overlooked by traditional funding sources.
Pátria Investimentos continues to raise funds for its Infraestrutura V fund, which focuses on equity investments in infrastructure projects. The fund’s first investment will be in a 30-year concession for highway works in Paraná state. Pátria has assets under management of around 140bn reais and a global presence.