By Brazil Stock Guide – Brazil’s development bank BNDES has approved R$20 billion ($3.8 billion) in financing to replace trucks, buses and other heavy vehicles, committing 95% of the R$21 billion available under its Mais Mobilidade program.
Applications for new transactions will remain open through Aug. 28, though the amount already approved leaves only about R$1 billion of the original allocation available. The credit line covers trucks, tractor units, buses, minibuses and road transport equipment.
The program has financed more than 19,000 transactions across 1,966 municipalities, with an average loan size of about R$1 million. Its beneficiaries include freight carriers, independent truck drivers, cooperative members, individual entrepreneurs and transportation companies.
Fleet operators accounted for R$19.1 billion of the approved financing through about 17,200 transactions. That amount included R$2 billion earmarked for bus purchases. Independent drivers received R$900 million across 2,100 transactions.
BNDES President Aloizio Mercadante said the bank processed nearly 1,400 approvals a day at the peak of demand.
“BNDES has responded quickly to demand for the modernization of truck and bus fleets. We approved nearly 1,400 transactions per day, serving fleet operators and independent drivers across the country with easier credit conditions. This credit line enables the replacement of older vehicles with a safer and less-polluting fleet, reducing logistics costs and supporting domestic industry,” Mercadante said in a statement.
The financing is distributed through a network of accredited financial institutions covering 94% of Brazil. Those partners are responsible for reviewing applications and contracting the loans.
BNDES expects the program to help remove older vehicles from circulation, improve road safety and reduce emissions from freight and passenger transportation. The initiative may also support domestic demand for heavy vehicles and related equipment as companies renew aging fleets.
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