Auction market activity signals opportunities for market participants

In the first quarter of 2024, B3 conducted 11 auction processes that led to the concession of 25 public assets and totaled BRL39.1 billion in contracted investments. During this period, over 120 financial guarantees were assessed and held in custody at B3.

As well as traditional bidding models, B3 carries out a licensing process whereby several interested parties with the required technical skills are awarded the service concession. B3 also serves new sectors, such as reuse water, public cleaning and lotteries.

And the good news is that the market is expected to continue its steady growth. Between April and July alone, 25 concession, leasing, disposal and public-private partnership (PPP) processes have been disclosed and confirmed, among other types of transfer of public assets to the private sector.

The sectors involved in these processes range from sanitation to road infrastructure, public lighting and basic sanitation. By year-end 2024, more than 50 transactions should be completed at B3.

This scenario affords many opportunities for players in the financial market. These include providing financial advice to bidders, structuring instruments for project financing (i.e. debt issuance and project finance) and offering bond instruments in the bidding phase (bid bond) and in contract execution (performance bond).

The projects also open up long-term investment opportunities with direct participation in bids through arrangements with sectoral operators, allowing adding profitable, long-term assets to the portfolio.

Learn more
Check out the calendar of auctions conducted by B3 and watch out for opportunities that may arise for your company.