Investment in Brazilian infrastructure is attractive for private equity investors. With the domestic economy growing, ports become a strategic part in the trade equation.
Darby Overseas Investments, Ltd. (“Darby”), the private equity arm of Franklin Templeton Investments, announced that the Brazil Mezzanine Infrastructure Fund (“BMIF”), managed by Darby’s joint venture with the Stratus Group, has invested R$35 million (US$20 million) in T-Grao Cargo Terminal de Graneis S.A.(“T-Grao”). Transaction details were not disclosed. This transaction is the second investment for BMIF.
T-Grao operates a port terminal specialized in grain handling in the right bank of the Port of Santos, the largest and the most active port in South America. T-Grao is the only independent grain terminal operator not associated with a trading company in the Port of Santos. The investment will increase T-Grao’s storage capacity and add export-related equipment. The investment will transform T-Grao from an import terminal focused on handling wheat into a bi-directional terminal that handles both imports and exports, including wheat, soybean and maize.