Brazil's National Development
Bank (BNDES) funding to pulp and paper companies hit Real 3.97 billion ($ 1.95
billion) in 2012, a 215% raise over 2011's figures. According to a document
released by the bank last week, the pulp and paper sector was the third in the
country's industrial sector that most benefited from BNDES's financing last
year, receiving 11% of all cash lent to industries. The bank's total funding
for industries was Real 32 billion.
BNDES has been required by
almost all Brazilian companies to finance their expansion plans, more recently
including Eldorado's pulp project and Suzano's new pulp mill under construction
in Maranhão state. The bank is also Fibria's major shareholder, with a 30.38%
stake in the company.
