The Brazilian government decided to include several solar energy equipment’s in a list of capital goods whose import taxes are zero-rated until the end of 2021, according to publications in the Official State Gazette. Import taxes for solar modules are usually 12%, while inverters pay tariffs of 14%.
2W Energia is another company with plans to make an initial stock offering (IPO) at B3. The company has filed an offer request with the Brazilian Securities and Exchange Commission (CVM) for a primary issuance of shares. One of the objectives with the funds to be raised, according to the prospectus, is to invest in wind energy projects. The IPO should be in the amount of R$ 1.5 billion ($ 288 mm).
The board of directors of the New Development Bank (NDB), the Bank of Brics, approved a $1 billion (R$ 5.3 billion) loan to Brazil. The amount will be used to pay the Federal Government’s emergency assistance to about 5 million people. With the new financing, the Brazilian portfolio of projects approved by NDB in the country now reaches $ 2.55 bn.
A photovoltaic solar power plant is in the final stages of construction. The project aims to serve hospitals in the capital and interior of the state of Mato Grosso do Sul and the enterprise will have 16,290 solar plates. With 5.7 MW of power, the plant will have the capacity to produce enough energy to supply around 7,000 popular homes.
Brazil’s electric power demand registered a drop of more than 3% in June compared to the same period last year, said the National Electric System Operator (ONS). According to ONS’s, the 61,602 average megawatt load registered by the National Interconnected System in June represents a drop of 3.4% in the annual comparison, but an increase of 2.5% in the following month.
Eletrobras informed that the company’s board of directors approved the granting of an advance for a future capital increase (Afac) of its subsidiary Eletronuclear, an operation that aims to speed up measures for the resumption of work on the Angra 3 nuclear power plant. The operation with its nuclear generation subsidiary will involve R$ 1.052 billion ($ 202 mm) in 2020 and R$ 2.447 billion ($ 470 mm) in 2021.
BNDES reported that it reached R$12 billion ($ 2.3 bn) in the approval of temporary suspensions of payments of loan instalments contracted with the institution. The measure, known in the market as standstill, is being granted for up to six months to more than 28,500 companies, in about 77,700 financing contracts, in direct and indirect modalities.
The fiscal impact of the Brazilian program to support the economy due to the covid-19 reaches almost 10% of GDP, but the measures help to mitigate the negative effects on the growth of local activity. These were some of the observations made by Brazil during the financial meeting of the G20 group. The percentage is higher than the average of 5.8% of advanced economies and 4.1% of developing countries, according to the government.
With entrepreneurs hanged by the economic crisis, the House of Representatives concludes the provisional measure (MP) 944, which has the potential to inject up to R$ 32 billion ($6 bn) in subsidised credit to SMEs. Almost 60% of the resources should go to “Pese”, a credit line administered by BNDES to incorporate the payroll of SMEs, the program lent a little over 10% of the R$ 40 billion ($7.7 bn) available.
Pork exports are expected to grow about 33% by the end of 2020, totalling 1 million tons, compared to 750,000 tons last year, according to ABPA. According to the entity, African swine fever has caused Asia to use the Brazilian product. Thus, Brazilian pork production should also increase, and APBA estimates that 4.2 million tons will be produced, against 3.9 million in 2019, an increase of about 6.5%.