Brazil to seek foreign investment in its power sector
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
The construction of Santo Antonio Dam, a hydroelectric dam is seen on the Madeira River in Porto Velho, Rondonia State, Brazil, September 3, 2015. REUTERS/Nacho Doce
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
RIO DE JANEIRO (Reuters) - Brazil's government will organize a roadshow abroad to attract investors to its power sector, and might consider offering power delivery contracts denominated in dollars to facilitate attraction of foreign capital, Luiz Barroso, head of state-run power research company EPE, said on Wednesday.
"The fact is that there is a lot of money available on European investment funds ... That money flows to countries who offer dollar-denominated receivables," Barroso told reporters while attending a power conference in Rio.
"Since the long-term currency risk is difficult to manage, it is an idea to be discussed," he added.
Barroso cited this month's large Chilean power auction, where bidders, mostly from Europe, were awarded dollar-denominated power delivery contracts.
Financing has been a critical factor for power companies in Brazil, as the worst recession in generations squeezes available credit.
Although recognizing Chile's economy is much more linked to the dollar compared with Brazil, Barroso said a discussion regarding this possibility should take place.
The EPE head said, nevertheless, that the government plans to lure foreign investors by showing business opportunities in Brazil even with current regulations.
Brazil plans to hold several auctions in the coming months for power generation and power transmission.
(Reporting by Luciano Costa; Writing by Marcelo Teixeira)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Exclusive: Chipotle builds team to defend against activist investor Ackman - sources
- Four guards at NYC's Rikers jail convicted in beating, coverup
- U.S.-based gold, stock funds suffer withdrawal in latest week: Lipper
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!