Article: Brazil: BNDES takes over 31% of Ferronorte; Railroad system attracts foreigners.

Brazil, Oct 28, 2004 (O Estado de Sao Paulo/SABI via COMTEX)

The Brazilian development bank BNDES (Banco Nacional de Desenvolvimento Economico e Social) has signed, yesterday, a letter of intent with Brasil Ferrovias group through which the entity will be the owner of 31% stake of Ferronorte railroad network. BNDES is not a partner of the company that is wholly owned by group's holding, also comprised of Novoeste and Ferroban. The letter predicts investments of R$1.6bil in the period between 2004 and 2009 in the Brasil Ferrovias companies. The initial injection will be made by BNDES - R$405mil - and by pension funds Previ (R$120mil) and Funcef (R$15mil). The ...

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