São Paulo, Brazil, February 2, 2011
—IFC, a member of the World Bank Group, has disbursed $45 million equivalent to Banco Industrial do Brasil (BIB) to support access to finance for small and medium enterprises in Brazil.
This is IFC’s first syndicated loan for Banco Industrial do Brasil and its fourth syndication for a financial institution in Brazil since June 2010. The syndication is composed of a $15 million loan for IFC’s own account with a three-year tenor and a syndicated loanwith two tranches—one denominated in U.S. dollars for $19 million and another denominated in euros for €7.7 million. Both tranches have two-year tenors.
Small and medium enterprises in Brazil provide two-thirds of the country’s 35 million formal jobs. However, many of these local entrepreneurs have not been able to obtain sufficient and timely funding to expand and sustain their operations. By supporting Banco Industrial do Brasil, IFC is helping extend services to smaller businesses and address this gap.
“Adequate and diversified funding is fundamental for us to confidently expand operations to small and medium enterprises,” said Eduardo Guimarães, Banco Industrial do Brasil’s Executive Finance Director. “IFC’s funding will help BIB us meet one of our strategic objectives to diversify funding sources, This first syndicated transaction willhelp increase our profile and create opportunities for the bank to establish new relationships in the international market.”
Loy Pires, IFC Country Manager for Brazil, said, “This transaction is yet another example of IFC’s commitment to expanding access to finance for Brazil’s small and medium enterprises, an important engine of growth and job generation. Banco Industrial do Brasil’s focus on lending to smaller enterprises, is consistent with IFC’s strategy to promote inclusive growth and opportunities in Brazil.”
These resources were raised through a syndication with the participation of four international banks. Distribution was led by IFC, Banco Itaú Europa, and Commerzbank. The participating banks were Banco Itaú Europa and Commerzbank as bookrunners and Israel Discount Bank and Banco Security as participants.
“In the past three years IFC has mobilized $1.1 billion from international banks to Brazilian midsize banks through its syndicationprogram, making a significant impact for the country’s small and medium enterprises,” said Stefania Berla, Global Head of IFC Syndications.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
About Banco Industrial do Brasil
Banco Industrial do Brasil is a privately owned Brazilian commercial bank, specializing in financing of small and midsize companies. In operation for more than 16 years in this market, the bank has developed a business model based on its specialization, its agility in generating quality assets, and its conservative credit policy, which provides the basis for profitable and sustainable growth. For more information, visit
www.bancoindustrial.com.br/ri
.
