According to the newspaper O Globo, BTG Pactual, one of the largest investment banks in Latin America, issued a policy of BRL 129 million ($25 million) in favor of the Ministry of Health, which ordered 6,500 pulmonary ventilators from the Brazilian company Magnamed.
The policy acts as a guarantee for advance payment and serves to ensure that the resources anticipated by the Ministry of Health to the manufacturer are used in the production process of the equipment.
On its LinkedIn page, BTG Pactual said that the operation contributed to making the necessary working capital feasible for the scalability of equipment production.
“We are very pleased to be able to meet the demand from the Ministry of Health with due urgency, which reinforces our effort on all fronts to combat the new coronavirus,” said André Esteves, senior partner at BTG Pactual.
This type of operation can be repeated in other joint initiatives between authorities and companies in the race to equip the Brazilian health system against Covid-19.