GIC's investment in Linx shows confidence in Brazil's economy
Published on Mar 12, 2014 10:29 AM
SINGAPORE - GIC, Singapore's sovereign wealth fund, is buying stakes in Brazilian companies in a sign of confidence the world's second-largest emerging market will overcome slower growth.
GIC bought 5.02 per cent of communications technology provider Linx SA, according to a March 10 filing by Linx. This month, it increased its stake in Sao Paulo-based food processor BRF SA and in October agreed to invest in water and sewage treatment company Aegea Saneamento e Participacoes SA.
The investments by GIC, which manages more than US$100 billion (S$126.6 billion) of assets, in Latin America's largest economy come as the government of Brazilian President Dilma Rousseff is combating inflation with interest rate increases, while sustaining growth.
Growth in gross domestic product is expected to accelerate to 2.5 per cent in 2015 from 1.9 per cent this year, according to data compiled by Bloomberg. That's more than double the rate in 2012.
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