business investment opportunities on infrastructure

Business Investment Opportunities onInfrastructure

Brazilian Economy Highlights

5h largest population in the world: 190 million inhabitants; Largest consumer market in Latin America; One of the countries least affected by international slowdown; PPP GDP in 2009: $2.013 trillion; Estimated 7.5% GDP growth in 2010; Estimated US$ 30 billion of FDI in 2010; Estimated US$ 185 billion of exports in 2010; Estimated US$ 172 billion of imports in 2010; Brazil has become an international net creditor; Since 2002, more than 25 million people jumped from lower classes to middle class; 43% reduction in poverty between 2003 and 2008; 14 million new employments created since 2003; Lowest unemployment rate in history: 6.8%; Inflation under control; High level of international reserves: US$ 257 billion in July 2010; R$ 1.5 trillion in credit in 1st semester of 2010 and still representing only 45% of GDP; Host of 2014 FIFA World Cup and 2016 Olympic Games.

Brazilian Infrastructure Highlights

Estimated future investments in infrastructure in Brazil (next 5 years):

Electric Energy US$ 14,2 bi

Oil & Gas US$ 37,7 bi

Transportation & Logistics US$ 12,1 bi

Sanitation US$ 6,8 bi

Telecomunication US$ 9,9 bi

TOTAL US$ 80,7 bi

Recent investments in infrastructure in Brazil (2003 – 2009):

Transportation US$ 48,2 bi

Electric Energy US$ 53,5 bi

Oil & Gas US$ 129,3 bi

Telecommunication US$ 56,2 bi

Sanitaion US$ 17,0 bi

Featured Projects

Project brief description

To acquire 40-49% of Central Park Condomínio Club (“Central Park”). It is the premier vertical development in Ecocil Development’s portfolio and one of the most strategic project in Natal. Central Park is located on the south side of Natal, by BR-101, offering easy access to the main points of the city. Near shopping centers, schools, supermarkets, universities, and 10 minutes from Ponta Negra beach. The project is comprised of 8 towers of high architectural standard, set in a beautiful landscape design. It has a complete structure for leisure, comfort and safety, with swimming pools, sports courts, playgrounds, gardens, trails and more. A work that, above all, brings the signature of Ecocil which is synonymous of credibility and quality.

Sector Real Estate

Type of investment Private

Estimated value of investment (US$)

USD 10 million for 40%

Form of disbursement of payments (if public project)

Equity

Other relevant information:Total GDV of BRL230 million/USD135million. Full term sheet available upon interest.

Central Park Codominium Club in NatalBy RG Salamanca Investimentos

Featured Projects


To prepare and upgrade suitable farmland already located and secured aiming to implement a reforestation project with focus on eucalyptus. With 89 thousand hectares as land bank; More than a thousand hectares planted on trial basis (tested a number of clones varieties).

SectorForestry, with opportunity to explore investment in related sectors: energy generation (biomass power plant), carbon credits, wood pellets, sawmill and MDF plant (wood boards).


Estimated value of investment (US$) USD 105/125 MM

Form of disbursement of payments (if public project) Equity and debt from Government Development Bank

Terms:Investment period/duration: 5 years, 14 years (2 typical Brazilian eucalyptus cycles)

Other relevant information:

Attractive conditions offered by Banco do Nordeste, a regional Brazilian Development Bank; Possible land price appreciation; The financial model shows that the company will start paying dividends in the year 2014.

Eucalyptus in 89 thousand hectaresBy RG Salamanca Investimentos

Featured Projects


ARACATI AEOLIS5 SITES120MW

Sector Wind Energy


Estimated value of investment (US$) US$ 285MM

Terms: Operations Start: July, 2014


One of the best % wind yield and availability of the worldFinance Structure: 70% Debt and 30% EquityProject awarded by Tax Benefits

Eolic Energy Park 1By Aracati Aeolis Geração de Energia LTDA.

Featured Projects


BEBERIBE AEOLIS GERACAO DE ENERGIA LTDA3 SITES111 MW

Sector Wind Energy


Estimated value of investment (US$) US$ 260MM

Terms: Operations Start: July, 2014


One of the best % wind yield and availability of the worldFinance Structure: 70% Debt and 30% EquityProject awarded by Tax Benefits

Eolic Energy Park 2By Beberibe Aeolis Geração de Energia LTDA.

Featured Projects


Our project is the implementation of reforestation area of 10,500 hectares of eucalyptus in its first phase, and later expand to 70,000 hectares. Goal of the project, intended to generate Carbon Credits for the mining and metallurgy industries and wood for the furniture industry.

Sector Agroflorestal

Type of investment PrivateEstimated value of investment (US$)

US$ 40.000.000 in First phase and US$ 175.000.000 in second phase

Form of disbursement of payments (if public project)

The first stage in the first three years and the second phase according to plan with investors

Terms: Start January 2010 / December 2015 the first phase


The reforestation sector is now being considered the fastest-growing segment in view of the concern about global warming and with strong demand for timber, whose offer has been well below the market need.Call the ecological and economic forestry sector is opening a large market opportunities.The State and Federal Government, are committed to generate tax benefits for projects of this nature, where we already have in the course of dealings, the exemption from VAT for the project and then getting together SUDENE, which is a federal agency to reduce income tax of the project.The Federal Bank of Development also has line of credit to finance reforestation projects, with terms and attractive rates

Reforestation projectBy Horus Empreendimentos e Participações S.A.

Featured Projects


Our project is a multimodal logistics condominium composed by a cargo airport , train connections , road connections and 24 km from Aratu industrial sea port . It is located on Camaçari city near Camaçari Petrochemical pool, composed by 60 petrochemical industries like Ford motor company, Continental tires , Bridegestone tires, Monsanto, Braskem and more . This project will receive 200 industries from small to big ones , logistics companies , hotels , private cargo airport and will work as a HUB for all industries .

Sector Logistics


Estimated value of investment (US$) US$ 200.000.000 – US$ 1 billion

Form of disbursement of payments (if public project) 3 years

Terms: Start – March 2011 / Conclusion March 2014

Multimodal Logistics Condominium in BahiaBy Incopar Incorporações e Participações Ltda

Featured Projects

Project brief description:

1) To build and consolidate an industry in Soybean Crush Mineiros-GO, by COMIVA, together with their membership;2) Number of membership: 1180 (one thousand one hundred eighty);3) Capacity: 1.000 (one thousand) tons a day, 330 days a year, during 24 (twenty four) hours;4) Area planted to supply the industry with raw: 101.000 (one hundred and one thousand).5) Generation direct jobs: 130 (one hundred thirty);6) Increase turnover/ income: U$ 180 (one hundred and eighty million) dollars.

Sector: Agriculture/ Soybeans;

Type of investment: Private

Estimated value of investment (US$):

1) Investment at the industry/ machinery and equipment: $ 65 (sixty five) million dollars; 2) Investment in expansion of storage: $ 24 (twenty four) million dollars; 3) Necessity of circuit capital: $ 24 (twenty four)) million dollars; 4) Funding of Agricultural (originate): $ 35 (thirty five)) million dollars; 5) TOTAL: US$ 148 (one hundred forty-eight) million dollars.

Form of disbursement of payments (if public project):

1) Construction period: duration of 18 (eighteen) to 24 (twenty four) months.2) Total payments for the period / month: $ 5 (five) million dollars in infrastructure (approximately);3) Terms of Disbursement: invoice of contractors / contracts for execution of work;

Multimodal Logistics Condominium in BahiaBy Incopar Incorporações e Participações Ltda

Featured Projects


Located in Peru, close do the border of Brazil, the Inambari Project is a Hydro Power Plant 2.200 MW capacity, with a reservoir area and volume of 378km² and 20.493 MMC, respectively. This Project is a 30 years concession and has a guaranteed PPA with the Brazilian and Peruvian governments. The initials feasibility studies started in March, 2008 and got ended the technical, economical and environmental studies at December, 2009.The concession´s licenses are already granted, and the Project Finance Structuring has just begun.

Sector: Energy



The estimated value of total investment (Capex) is US$4,9 billion. The Project shareholders are Construtora OAS with 51% shares and the Brazilian Public Energy company: Centrais Elétricas Brasileiras AS - Eletrobrás with 49% participation.The Construtora OAS has the intention to dilute its participation. The company intention is to keep from 5% to 20% of its participation.

Brazil-Peru Hydro power PlantBy Inambari

Featured Projects


Shipyards and Dockyards Project consist in repair and build ships, also these can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards will be associated with maintenance and basing activities and shipyards with initial construction. The Shipyard will build oil platforms including modules and drilling platforms. This Project concept includes also a Dry-dock which is a narrow basin or vessel that can be flooded to allow a load to be floated in, then drained to allow that load to come to rest on a dry platform. Dry-docks will be used for the construction, maintenance, and repair of ships, boats, and other watercraft sectors.

Sector: Oil & Gas



The estimated total Project Costs are US$1 billion. The Project will be priority to attend Petrobrás Company, with contracts value average of US$700 mm each. The first bidding process (public tender) will be in the first quarter of 2011, in total of 7 contracts.

Shipyard for Oil PlatformsBy Construtora OAS

Featured Projects


Located strategically in Guarujá – São Paulo, just 1,2 nautical miles from the ocean, the Supply Base Project comprehend an area of 500.000 m² with a modern cargo handling equipment, such as, Cranes, Super heavy cranes and Forklifts, also Hydrolift and Warehouses are in the scope. To perform a good service, the site has 900 meters of deepwater quay structure.The Services envolving in the project are: Supply vessel operations; Waste management; Tubular management; Internal transport; Project cargos and heavy lift; Supply vessel repairs; Storage (indoor & outdoor)

Sector: Oil & Gas



The estimated total Project Costs are US$440 mm.

Supply Base ProjectBy Construtora OAS

Featured Projects


Shipyards and Dockyards Project consist in repair and build ships, also these can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards will be associated with maintenance and basing activities and shipyards with initial construction. The Shipyard will build oil platforms including modules and drilling platforms. This Project concept includes also a Dry-dock which is a narrow basin or vessel that can be flooded to allow a load to be floated in, then drained to allow that load to come to rest on a dry platform. Dry-docks will be used for the construction, maintenance, and repair of ships, boats, and other watercraft sectors.

Sector: Oil & Gas



The estimated total Project Costs are US$1 billion. The Project will be priority to attend Petrobrás Company, with contracts value average of US$700 mm each. The first bidding process (public tender) will be in the first quarter of 2011, in total of 7 contracts.

Shipyard for Oil PlatformsBy Construtora OAS

Featured Projects


Valora is a financial services firm dedicated to Structured Finance (Corporate e Project Finance, M&A, Public-Private Partnerships) and Asset Management (Fixed Income/Corporate Debt and Private Equity).

Sector: Energy, Oil & Gas

Type of investment: Private Equity

Estimated value of investment (US$): Valora Oil & Gas Fund: target: US$ 500 million

Terms:Closing date: July 2011

Private Equity FundsBy Valora Investimentos

Featured Projects

Company description:

BRZ Investimentos is a leading independent asset manager in Brazil, with over US$2.5bn in AUM. The firm was founded at GP Investments in 1998, and spun out in 2006. Our private equity team targets active minority positions in high growth companies with strong cash flows in the infrastructure and agribusiness sectors.

The company is currently raising capital for two projects in logistics and infrastructure.

Sector: Infrastructure, logistics



Brazilian ports and logistic settlements: target US$ 523 million

Brazil Infrastructure: target US$ 500 million – US$ 1 billion

Terms:

Brazilian ports and logistic settlements: 1st quarter 2011

Brazil Infrastructure: 1st quarter 2012

Private Equity Funds in logistics and infrastructureBy BRZ Investimentos

Featured Projects


Modal Administradora de Recursos (MAR) is the Private Equity branch of Modal Group. Since the inception in 2009, it has structured 2 funds with a combined assets under management of over R$ 1.8billion (US$1 billion), FIP Coliseu and Oil & Gas FIP, focused in the energy sector and oil and gas supply chain respectively.

Sector: Energy, Oil & Gas



FIP Coliseu: around US$ 750 million

FIP Oil & Gas: around US$ 300 million

Private Equity Funds in Energy and Oil & GasBy Modal

Featured Projects


The holding controls two ethanol and sugar mill Companies in Brazil with three plants. The sugar cane crushing capacity is 9 million metric tons per year, producing sugar, ethanol, yeast and electricity from bagasse cogeneration. The group annual revenues is around US$ 400 million with EBITDA margins of 30%.

The global demand expansion for ethanol and sugar gives Brazilian unique position as the main player in the international market for such commodities. Sugarcane ethanol is the best biofuel to be used for GHG reduction today.

Sector: Renewable Energy: Eletricity, Ethanol/Sugar

Type of investment: Equity Investment and/or convertable


US$ 200,000,000.00

Terms:Valuation –TBD.Project starting in 2012.

DGF Bioenergy BrazilBy DGF Investimentos

Featured Projects


Trivèlla Investimentos S.A. has a team of US trained PE professionals to focus on local co-investment opportunities with successful entrepreneurs in Brazil’s richest region, and one with the most opportunities for the sophisticated investor. We focus on maximizing the upside co-investing with local experts, keeping risk under control.

Sector: Real Estate

Type of investment: Private Equity and Real Estate


Trivella Brazil Real Estate: US$ 50 million.

Trivella M3 Fund: US$ 10 million.

Terms:Trivella Brazil Real Estate: May 2011.

Trivella M3 Fund: March 2011.

Private Equity FundsBy Trivella Investimentos

Featured Projects


Caixa is the third biggest bank in Brazil, the biggest Brazilian lender for water and waste management companies, the biggest Brazilian lender for house financing, the one of the main lenders for urban infrastructure and has Fourth Brazilian biggest asset manager.

Fund raising: FIP Caixa Infrastructure

Sector:Energy, sanitation, logistics, ports, highways, hydroways, railways, airports, transport and telecommunications.

Type of investment: FIP


Target: US$ 1 billion

Terms: March 2011

FIP Caixa Infrastructure By Caixa Economica Federal

Featured Projects


Itacare Capital was formed in 2006 and manages Itacare Capital Investments, thefirst Brazilian real estate fund listed in the London Stock Exchange, with assets undermanagement of approximately US$ 85 million. Itacare Capital is currently raising tworeal estate funds: (i) one focused on logistic/industrial and commercial development,and (ii) other focused on residential and tourism real estate development .

Sector: Real Estate/ Private Equity


Itacaré Capital II: target US$ 250 million

BASE: target US$ 250 million

Terms:Itacaré Capital II: December 2010

BASE: January 2011

Real Estate FundsBy Itacare Capital Investments

Featured Projects


Itapororoca Resort: The project consists on a high-end residential resort along with a Fasano Hotel (one of the best hotel brands in Brazil).The entire project comprises 154 residential units (in which 38 are Fasano branded villas), 40 Fasano Hotel Bungalows, Spa, Beach Club and Tennis court.

Duas Barras Resort: The Hotel involves a 6-star 40 room hotel with 54residential villas, 3 restaurants, 2 polo fields, Spa and other amenities within a 200Ha area. The master plan was developed by New-York based Field Operations.

Três Praias Resort: The project is a residential complex of 700 units with several recreational and service amenities (restaurants, hotel, tenniscourts and a Spa), with 3 beaches totaling 800 meters of beachfront. The project partner (Brookfield) owns 10% of the project and is in charge of the licensing and development costs.

Sector: Real Estate/ Hospitality


Itapororoca Resort: Initial Investment – US$ 16.5 mm; Additional Investment – US$ 1.5 mm; Current Value (Jones Lang Lasalle Valuation) – US$ 42.9 mm

Duas Barras Resort: Initial Investment – US$ 8.2 mm; Current Value (Jones Lang Lasalle Valuation) – US$ 34.1 mm

Três Praias Resort: Initial Investment – US$ 16.5 mm; Current Value (Jones Lang Lasalle Valuation) – US$ 35.1 mm

Resort ProjectsBy Itacare Capital Investments

business investment opportunities on infrastructure

Documents

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