Washington, D.C., February 1, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, today announced that BICBANCO of Brazil has joined its Global Trade Finance Program as an issuing bank, the first bank to do so in the country.
IFC’s Global Trade Finance Program supports trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
“The Global Trade Finance Program is an important element of IFC’s strategy to reach out to Brazilian banks, particularly those serving the middle market segment, a key area of IFC’s focus in the region” said Shamsher Singh, IFC’s Regional Manager, Financial Markets Field and Portfolio.
Paulo Celso del Ciampo, BICBANCO’s executive director, said, “Participating in the Global Trade Finance Program will help us build a strong relationship with IFC and enable us to provide our customers access to developing markets, with an emphasis in Africa where BICBANCO has an important volume of trade business.”
Saran G. Kebet-Koulibaly, IFC’s country manager for Brazil, added, “The Global Trade Finance Program is in line with IFC’s strategy in Brazil to support export-oriented companies, which are important for sustainable economic development.”
IFC in Brazil
During fiscal year 2005, Brazil received the largest amount of IFC financing, in dollar value, among Latin American countries. IFC invested $591million, including $190 million in syndications, in sectors ranging from agribusiness and transportation to manufacturing and the financial sector. IFC’s total portfolio in Brazil was $913 million at June 2005.
IFC's strategy for Brazil focuses on enhancing clients' prospects for competitiveness and growth, improving the country's social equity through voluntary actions by the private sector, and continuing to promote sustainability. Since 1956, when Brazil joined IFC, the Corporation has provided $7.45 billion, including syndications, for 162 companies.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org/gtfp
.
About BICBANCO
BICBANCO is one of the oldest private banks in Brazil and the ninth largest national private bank in the country serving medium size companies. The bank’s main lines of products are working capital and secured loans, trade finance, and public employee loans. Trade finance in particular represents 20 percent of the bank’s total loans.
