POST-2008 INFRASTRUCTURE FINANCING IN BRAZIL: A REFLECTION ON PRIVATE INVESTORS ATTRACTION MECHANISMS

Abstract

The paper seeks to identify some characteristics of infrastructure financing in Brazil between 2008 and 2019 in order to question the effectiveness of the different methods used to attract investors to the projects. Therefore, from a historical-deductive approach, aspects of macroeconomic and financial policies and the evolution of the domestic institutional framework in two sub-periods (2008-2014 and 2015-2019) will be listed, to be subsequently confronted with the results in investment terms. The research thus combines quantitative methods – through the treatment and analysis of secondary data – with qualitative elements in order to illustrate the different situations. Among the main findings, in the post-2008 period there was a considerable attraction of private capital to greenfield projects as a crowding-in effect of Brazilian state-owned companies – used as dynamos of a positive investment agenda. As of 2015, in turn, the option elected was to anchor expectations exclusively via equilibrium prices, with an inversion in the financing mechanisms, embodied in a greater share of the capital market ending up in a reduction in the level of aggregate investment in infrastructure in the country.

Keywords

• infrastructure financing
• anchoring expectations
• attracting private investors
• international investors