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São Paulo, October 22, 2010–IFC
, a member of the World Bank Group, today announced that it has concluded funding arrangements in the amount of $205 million equivalent that will support access to finance for small and medium enterprises in Brazil. This is the largest IFC syndication for a financial institution in Latin America and the fifth IFC investment in BicBanco since 2006.
The syndication is composed of an A loan of $25 million for IFC’s own account with tenor of five years, and a B loan with four tranches: two denominated in US dollars in an amount of $25 million with a tenor of two years, and $106 million with a tenor of three years; it also includes two other tranches denominated in Euros, in an amount of €5 million with a tenor of two years and €30 million with a tenor of three years. The deal closed with a 40 percent over-subscription and reflects an important mobilization ratio of 7.2 times.
These resources were raised through a global syndication, with the participation of 14 international banks, and distribution was led by IFC, Banco Itaú Europa, Commerzbank, and Standard Chartered. The participating banks were Banco Itaú Europa, Commerzbank, Standard Chartered, Citigroup, HSBC as bookrunners; and Standard Bank, Banco Santander, ING, JP Morgan Chase, Bank of America, Israel Discount Bank, Oberbank, Banca Monte Dei Paschi di Siena, and LBBW as participants.
“The syndication will create new banking relationships for BicBanco and maintain the bank’s international funding diversification, which will support the growth of our SME operations, especially in the northeast where BicBanco has an important presence,” said Milton Bardini, Bicbanco’s Executive Vice President. Today, SMEs in Brazil provide two-thirds of the country's 35 million formal jobs. Local SMEs have not been able to obtain sufficient and timely funding to expand and sustain their operations. By supporting BicBanco, IFC is helping the bank expand operations to SMEs and to address this gap.
Loy Pires, IFC Country Manager for Brazil, said, “This transaction demonstrates IFC’s commitment to expanding access to finance for SMEs, an important engine of growth and job generation in the country. BicBanco’s focus on the northeast, where a large segment of the population does not have access to services such as financial services, is consistent with IFC’s strategy to promote inclusive growth and opportunities in Brazil”.
“With this deal, IFC has mobilized through its B Loan program US$1.1 billion from international banks to Brazilian midsize banks in the past 3 years making a significant impact in the banking industry and in its SMEs clients” 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
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About BicBanco
One of Brazil’s oldest private banks, BicBanco is a leading provider of funding to small and medium enterprises in Brazil. It is the seventh-largest national private bank serving midsize companies. The bank’s main lines of products are working capital, secured loans, trade finance, and public employee loans. BicBanco is rated Baa3 by Moody’s on a global scale. For more information, visit
www.bicbanco.com.br
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