Engie sells carbon credits to Itaú Unibanco

French electricity group Engie signed an agreement to sell Itaú Unibanco carbon credits from its biomass cogeneration plant in Lages, Santa Catarina. Itaú will offset 35,354 tonnes of CO2 emissions reported in 2018 – the same as the annual emissions of 3,800 people in Brazil. In exchange, the UN Framework Convention on Climate Change issued a certificate recognizing the transaction. The methane reduction project of Lages was selected by an Itaú project in conjunction with Natura and supported by NGO Ekos Brasil to encourage projects that mitigate the effects of global warming. The 28-megawatt plant is Engie’s first project in the world to curb greenhouse gases by generating power from wood scraps, thus eliminating the potential methane emission from its natural decay.

Source: Valor Econômico
http://www.valor.com.br/international

Next could achieve breakeven point this year

Bradesco expects its digital bank Next to achieve the breakeven point this year and be profitable by 2021 after reaching 1.8 million clients at the end of last year. Bradesco CEO Octávio de Lazari Jr. also told reporters Wednesday that Next’s structure must be separated from Bradesco with the subsidiary having its own business taxpayer number, CEO, technology and human resources structure. The digital bank already has 700 employees. More than 126 million transactions were made between October and December, 20% more than in the previous quarter, and it is opening 7,000 digital accounts a day. According to Mr. Lazari, in this scenario, if an investor comes along he “has nothing against it.”

Source: Valor Econômico
http://www.valor.com.br/international

Four companies interested in buying Outback in Brazil

The process of selling rights to the Outback chain in Brazil has moved to the second phase, when companies must submit their firm offers. Valor has learned that private equity firms Advent International and Vinci Partners, fast-food giant Burger King and burger chain Madero are in this stage. The chain is valued at between R$1.5 billion and R$2 billion (excluding royalties), considering a multiple of 13 times EBITDA, two sources say. In 2019, Outback had R$1.4 billion in revenues from about 100 units in the country. Talks include Outback and Abbraccio, an Italian resturant chain with 12 units in Brazil also owned by US-based Bloomin’ Brands.

Source: Valor Econômico
http://www.valor.com.br/international

Federal government wants states to relinquish lotteries

The federal government is battling four states in court to eliminate what it considers a risk to foreign investors entering the lottery market in Brazil. Officials in Brasilia argue that state lotteries in Minas Gerais, Rio de Janeiro, Ceará and Paraíba are illegal. The state governments disagree with the 1967 law that made lotteries a federal government’s monopoly and even want to expand their existing offerings. Prompted by the Economy Ministry, Federal Attorney General’s Office (AGU) said it “has been adopting all judicial measures to uphold current legislation on the subject.” The government wants to publish a decree by March regulating fixed-odds sports betting with the aim of drawing large international companies to the industry.

Source: Valor Econômico
http://www.valor.com.br/international