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São Paulo, October 7, 2014 -
IFC, a member of the World Bank Group, announced it will provide US$ 125 million to Banco BBM S.A. in loans and guarantees to expand access to finance for medium-sized corporations in Brazil’s agribusiness sector.
IFC’s loan totals US$ 100 million and consists of a 5-year US$ 50 million loan, a 3-year US$ 25 million syndicated loan, and a 5-year US$ 25 million loan through the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio. Banco Bradesco Europa S.A. and Israel Discount Bank of New York are the syndicated lenders.
BBM has also joined IFC’s Global Trade Finance Program with a US$ 25 million line, to expand access to trade finance to its clients. IFC’s Program supports trade in emerging market countries by providing partial or full guarantees for individual trade transactions, through an effective mitigation instrument, the IFC’s triple-A credit rating.
Support to the growth and development of the agribusiness sector is one of the priorities of IFC’s global strategy as it plays a critical role in alleviating poverty, reducing income inequality, and promoting a sustainable increase in food availability. Agribusiness has been one of the most dynamic sectors of the Brazilian economy and represents one of its major competitive strengths, accounting for approximately 20% and 40% of Brazil’s gross domestic product and exports, respectively. The sector is a major source of employment generation in the rural areas of the country, where opportunities are scarce.
“We acknowledge that IFC has been an important partner for BBM in the last years. At this time, IFC’s support will strengthen BBM’s market position, enabling the bank to provide the long-term financing that agribusiness clients require”, says Cassio Von Gal, BBM Director. “We also appreciate the participation of Bradesco and Israel Discount Bank in this operation”.
“This is IFC’s fourth investment in BBM. We are pleased to continue to work with the bank to help increase access to finance for medium-size agribusiness companies with focus on the Central, South and Southeast regions of the country”, says James Smouse, IFC Head of Financial Institutions Group in Brazil. “In addition to supporting a committed partner in the agribusiness sector in Brazil, this financing also gives us the opportunity to contribute to enhancing social and environmental standards in the sector, which plays a key role in the country’s economy.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY14, our investments reached an all-time high of more than $22 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About Banco BBM
Banco BBM is a Brazilian medium size bank focused on structured credit transactions and wealth management. BBM’s global and local credit rating by Moody’s has remained stable since 2009 and the Bank is rated one notch below investment grade by Moody’s (Ba1) on the international scale. On the local scale, the Bank’s rating is Aa2.br. It announced Net Income of R$ 17.3 million in the first semester of 2014. More information
http://www.bbmbank.com.br
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