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São Paulo, December 13, 2010—
IFC, a member of the World Bank Group, today announced the signing of an equity investment of up to approximately US$20 million in Banco Triângulo S.A, or Tribanco, supporting a long term partnership and helping provide financing for micro, small, and medium enterprises. The investment will help Tribanco, one of Brazil’s leading providers of supply chain financing, double its size in the next three years while expanding its reach to small entrepreneurs, which are essential to Brazil’s economic development and social well-being.
IFC’s equity investment in newly issued common shares of Tribanco supports a partnership that began six years ago when IFC provided $25 million in funding to the bank. IFC’s new role as an independent shareholder marks an important step in strengthening corporate governance at Tribanco, which is family owned.
“IFC’s investment provides a stamp of approval that will help Tribanco access international capital markets,” said João Rabello, Tribanco’s CEO. “We are well-known in Brazil, but need more exposure outside the country. Though Tribanco has a comfortable capital base, IFC’s investment will further increase its leverage capacity, given the promising growth outlook for the Brazilian market.”
Brazil’s micro, small, and medium enterprises account for over half of all formal employment and close to 20 percent of the country’s gross domestic product. Small shops known as “varejos” are widely scattered throughout the country and account for over half of Brazil’s total retail food sales. Still, they have been mostly neglected by the banking industry. By supporting Tribanco, IFC is helping address this gap and extend access to finance to micro, small, and medium enterprises.
Loy Pires, IFC Country Manager for Brazil, said, “IFC’s equity financing marks a historic step in the strategic relationship between both institutions and will send a strong signal of support to the market. This signal is key, given Tribanco’s significant future funding needs which will support micro, small and medium retail businesses. This investment is also part of IFC's strategy to promote inclusive growth and opportunities in Brazil by expanding access to finance for these small businesses, a key engine of growth and job generation in the country.”
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 Tribanco
Tribanco was founded in 1990 and is part of the Sistema Integrado Martins, or SIM, a group of companies that provide wholesale distribution, training, and financial services to the largest supply chain in Brazil. Tribanco is a specialized medium-sized bank that serves micro, small, and medium-sized retail outlets as well as medium-sized manufacturers and low-income consumers. Tribanco’s business model leverages SIM’s market footprint, industry know how, and distribution capacity to deliver a value proposition to customers. For more information, visit
www.tribanco.com.br
and
www.martins.com.br
.
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