Gov’t makes $590.7 mi from auction of 22 airports

In an auction held today (Apr. 7) at São Paulo stock exchange B3, 22 airports were conceded across 12 states, bringing in $590.7 million. The competition was organized by Brazil’s National Civil Aviation Agency in three blocks: North, South, and Central.

The Companhia de Participações em Concessões, part of the CCR group, won the South (nine airports) for $375.9 million and the Central section (six airports) for $134.9 million. The bids had a premium of 1.534 and 9.156 percent, respectively. Vinci Airports won the North (seven airports), paying $75.7 million, a premium of 777 percent on the minimum bid fixed.

The Ministry of Infrastructure reports that the terminals—where 24 million passengers circulate every year—should receive approximately $1 billion in investment, in addition to the amounts paid for the contract award. The concession deals are valid for 30 years.

Source: Agência Brasil

Brazil in 8th place in real-time transactions

The creation of instant payment system Pix by the Central Bank four months ago made Brazil climb one position among the countries that generate the most real-time transactions last year, reaching the eighth place and surpassing the United States. There were 1.3 billion transactions in 2020, a 58% increase over those recorded in 2019, shows a new global report from ACI Worldwide and GlobalData. The countries ahead of Brazil are India, China, South Korea, Thailand, the United Kingdom, Nigeria, and Japan.

Source: Valor International

PAHO will help Brazil buy drugs for intubation

Brazil’s Health Minister Marcelo Queiroga reported that the Pan American Health Organization (PAHO), a branch of the World Health Organization (WHO), will help the Brazilian government purchase “intubation kits” for COVID-19 patients.

It will be possible, the minister said, to replenish regulating stocks “in a way that this daily operation—bringing supplies to states and municipalities—is made less cumbersome for the Health Ministry, with less anxiety for the Brazilian people.” The first items should arrive in ten days, he said.

The announcement was made by the minister, who was joined by PAHO’s Brazil Director Socorro Gross,  in Brasília on Saturday morning (Apr. 3). They were in a video conference with WHO Director-General Tedros Adhanom.

She told journalists the organization is ready to make the immediate offer of eight of the more than 20 drugs used in intubation. After the acquisition proceedings are completed, these items may start arriving in two weeks, she noted.

Since last month, the stock of these supplies have reached critical levels at both public and private hospitals across the country, due to the quick increase in the number of patients hospitalized with COVID-19.

Source: Agência Brasil

EB Fiber to close 5 acquisitions

Private equity manager EB Capital – which bought fiber optic providers Sumicity (Rio de Janeiro) and Mob Telecom (Ceará) at the end of 2018 – is expected to announce five more acquisitions from May until the end of June, while analyzing the business of two other providers. With these new acquisitions and operational growth, EB Fiber will reach revenues of R$1 billion in 2021, with more than 1 million users compared to about 300,000 today. The projection was made by Pedro Parente, former CEO of Petrobras, who took over EB Fiber last month.

Source: Valor International

Lawmakers see deforestation as major environmental problem

Brazilian lawmakers see deforestation as the country’s biggest environmental problem, and they don’t believe that environmental protection is a barrier to economic development. These are some findings of a survey with 179 legislators carried out by Congresso em Foco, a website specialized in covering the Congress. The Bolsonaro administration’s environmental and climate policies were rated as bad or terrible by 50.3% of the lawmakers and excellent or good by 24.5%. However, most of them disagree with the statement that this is the time to pass law regulating mining on indigenous lands.

Source: Valor International

BTG launches actively managed bitcoin fund

BTG Pactual started testing the interest of Brazilian investors in cryptoactive funds last year, when BTG launched a vehicle to invest in a fund from fintech Hashdex and raised R$400 million with the product. Now, the bank has decided to set up its own crypto-active strategy and is launching the first actively managed local fund that invests in bitcoins. Aimed at retailers, BTG’s fund will have a minimum contribution of R$1, while a single bitcoin costs almost $60,000.

Source: Valor International

Petrobras again among top stock picks

After leaving in March the Carteira Valor portfolio of stock picks – for the first time in more than four years – Petrobras is back on the list in April, recommended by three brokers. The recommendations are led by commodity producers. These companies benefit from both the internal and external scenarios and thus minimize the risks of local uncertainties caused especially by the pandemic and political tensions. Companies that performed well in 2020 also figure prominently in this month’s selection. Besides Petrobras, the name that also represents the commodities sector in April is Vale, which continues in the leadership, indicated again by 15 firms. Steelmaker Gerdau, oil company PetroRio, retailer Via Varejo, industrial company WEG, exchange operator B3, Itaú Unibanco, meatpacker JBS and software company Totvs also made it to the list.

Source: Valor International

With Biden, Brazil expects revision of steel quotas

The plan of the United States President Joe Biden to invest $2.3 trillion in infrastructure, announced last week, raised the expectation of the Brazilian steel industry that Washington may review the quotas that limit imports of domestic steel, imposed by Donald Trump’s administration. Marco Polo de Mello Lopes, president of the Brazil Steel Institute, an organization that gathers Brazilian steelmakers, notes that the basis for an infrastructure program is steel, “but the American steel industry is not self-sufficient in raw materials, and will need to import much more semi-finished steel.”

Source: Valor International

Brazil seeks partners for aerospace base development

The Brazilian Space Agency (AEB), in cooperation with the Air Force Command (Comaer), will launch a public call in coming days for companies interested in developing aerospace base Alcântara, in Maranhão. Works to build infrastructure at the base were interrupted after a partnership between Brazil and Ukraine was terminated. With the promulgation of a technological safeguards’ agreement between Brazil and the United States, in 2019, the possibilities of new partnerships to develop the base were expanded. Alcântara’s main asset is its privileged position: just two degrees south of the Equator. A rocket launched from the base uses 30% less fuel to put a cargo in orbit than from, for example, Florida. The lower fuel demand allows an increase in the cargo’s weight.

Source: Valor International

Brazil puts pressure on France at WTO

Brazil has begun to press the European Union at the World Trade Organization (WTO) over how France is expanding its soybean production. The targets are whether the growth takes place in an environmentally sustainable way and whether the program’s subsidies are legal. Brazil used the regular meeting of the WTO Committee on Agriculture to question the EU about France’s new “national strategy for vegetable proteins.” The Brazilian questioning has a political aspect: recently, French President Emmanuel Macron once more linked Brazilian soy production to deforestation and promised to stimulate the cultivation of the commodity in France in order to no longer depend on Brazil for this market.

Source: Valor International