BNDES, Brazil's state development bank, plans to create a fund that could invest as much as 1 billion reais ($415 million) into local infrastructure notes, a senior executive said on Wednesday.

The fund could be formally implemented next year, and should have a minimum size of 800 million reais, said Antonio Tovar, head of the BNDES' alternative energy department. BNDES is Brazil's largest source of long-term corporate credit.