Brazil’s Caixa loan book to keep expanding at breakneck pace
1 mortgage lender begins to fund infrastructure projects, Chief Financial Officer Mrcio Percival told Reuters in an interview.
State owned Canada Goose Outlet Caixa loan book rose 43 percent in the 12 months through February, up slightly from 42 percent growth in 2012, Percival said. An ambitious drive to canada goose clearance sale fund road, railway, port and civil construction projects should replace consumer and mortgage lending as the main engines for growth, he said.
Currently, the bank is preparing the disbursement cheap canada goose uk of 45 billion reais Canada Goose Coats On Sale ($22 billion) in new credit for infrastructure projects in the medium term, Percival said. The bank Canada Goose Parka expects to canada goose factory sale funnel up to 70 billion reais into the segment by the end of this year.
are going to close the first quarter with very encouraging numbers in the credit front, Percival said.
His remarks underscore Caixa intention uk canada goose to expand its loan book this year beyond the 35 percent growth target it set early last month. Last week, Moody Investors Service lowered Caixa long term issuer ratings, citing an eroding capital position after years of rapid credit expansion.
The Moody decision canada goose uk outlet was unexpected and reflects growing concern in the investment community over Brazil increased use of state lenders buy canada goose jacket to revive growth, regardless of the strategy fiscal consequences. Caixa, which is fully controlled by the federal government, has been instructed by President Dilma Rousseff to boost credit access for individuals and companies while aggressively reducing borrowing costs.
At the same time, the Brasilia based lender has increased dividend payouts to the government, which has in turn replenished the company capital with Treasury debt instead of cash.
Caixa loan book has risen 40 percent annually, on average, since 2009.
EXPLORING NEW SEGMENTS Caixa earned canadagooseoutlete 1.869 billion reais in the fourth quarter, about 15.6 percent more than in the same period a year earlier. Its loan book swelled to 353.7 billion reais at Canada Goose Outlet the end of 2012, propelled by a surge Canada Goose Online in credit to corporations.
In the opinion of Percival, robust data for loan disbursements should help persuade foreign investors to participate in an upcoming global bond sale. Caixa will stick to its original plan to raise canada goose black friday sale up to $2.5 billion in bonds and loans in global debt markets this year despite the Moody rating cut, Percival said.
Presenting the data uk canada goose outlet on credit growth be a good way of dispelling that bad climate created by the Moody decision, he said.
In order to leverage growth Canada Goose Jackets in segments like infrastructure, where risk tends to be higher because of the long duration Canada Goose online of projects and the large size cheap Canada Goose of financing involved, Caixa is accelerating plans to create an investment banking unit, the executive added. Percival expects the central bank canada goose coats to approve plans for the unit by July.
The unit should help the lender structure different types of credit products like project finance, Percival said. Until a couple of years ago, Caixa canada goose store lent almost exclusively to homebuilders and homebuyers.
The lender canada goose coats on sale is targeting Canada Goose sale auctions for road and canada goose uk black friday railway projects and is already looking for business partners, he added.
Currently, lending for infrastructure projects represents 10 percent of buy canada goose jacket cheap Caixa outstanding loans. The bank intends to grow in that area, Percival said, without giving a specific target.
(Additional reporting and writing by Guillermo Parra Bernal; editing by John Wallace)C Reuters 2012. Republication or redistribution ofReuters content, including by caching, canadian goose jacket framing, canada goose or similar means, isexpressly prohibited without the prior written consent canada goose clearance of Reuters. Reutersand the Reuters sphere canada goose uk shop logo are registered trademarks and trademarks ofthe Reuters group of companies around the world.