Brazilian bill seeks to make infrastructure bonds appealing to global pension funds
Stakeholders in Brazil’s infrastructure sector are hoping for the senate to approve a bill that extends tax breaks on infrastructure debentures, in order to attract global players to invest in financing long-term projects.
The country’s lower house approved the bill in July and it is now being considered by the upper house.
“We’re carrying out several bidding processes that can’t be financed solely with bank financing. We’ll need deep engagement from the capital market, and infrastructure debentures will play a key role in that,” Natália Marcassa, secretary for development, planning and partnership at the infrastructure ministry, said during a webinar hosted by financial daily Valor Econômico.
Infrastructure debentures have been used in Brazil since 2011 and they currently provide tax exemptions for individual investors. Under the bill in congress, that benefit would be extended to companies that issue such bonds, as well as investments in these securities by pension funds, including international players.
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