Participation in fund to support Brazilian productive sector

(Brasilia, August 3, 2011).- As a means of favoring the development and investments required in the Brazilian energy sector through support for suppliers of goods and services, CAF – Latin American development bank – is to participate in Fundo de Investimento em Direitos Creditórios AGN Fornecedores Petrobras (FIDC AGN).

"The idea is to create conditions in which local suppliers can solve their technology, staffing and financial needs, as a way of supporting investment in the energy sector of this CAF member country," Moira Paz Estenssoro, CAF director representative in Brazil, said.

The CAF executive said the Latin American financial institution's participation in the Fund was in line with its strategic objectives. "This time we are specifically supporting a strategically important sector with growth potential: the Brazilian northeast." CAF’s presence in the Fund will facilitate increased participation by private investment in the economic and financial strengthening of the suppliers to the sector, promoting economic growth and regional development.

FIDC AGN is a capital fund whose objective is to invest in receivables derived from contracts between Petrobras and its suppliers related to sale and supply of goods and services by local suppliers to companies in the Petrobras group, specifically in the Brazilian Northeast with focus on Rio Grande do Norte state.

The creation of the Fund came out of a private initiative with state support, through AGN Agencia de Fomento do Estado do Rio Grande do Norte, S.A., as one of the actions taken by Petrobras in favor of the development and investments needed in the Brazilian energy sector.