Washington, D.C./ São Paulo, Brazil, November 16, 2009
– IFC, a member of the World Bank Group, will promote access to student loans in Brazil with $12 million Brazilian Real (about $6.7 million) equity investment in Brazil’s Ideal Invest. IFC’s investment will help a large number of students gain access to their choice of undergraduate programs. It will also help reduce the number of post-secondary students dropping out of university because they cannot afford to pay tuition fees.
Ideal Invest runs the "Pravaler" private student loan program which offers students a competitive alternative to finance college tuition. The program currently serves about 10,000 students in Brazil and Ideal Invest plans to increase the reach of the program in the next several years.
Oliver Mizne, Founder and CEO, Ideal Invest said, “Student lending is in its early stages in Brazil, but we believe the Pravaler private student loan system is ready to be taken to a new level. With IFC as a shareholder, we expect to help a significantly larger student pool, thereby accessing a much larger capital base.” He added that Ideal Invest saw in the partnership with
IFC a great opportunity to accelerate the growth of the program.
Jyrki Koskelo, IFC Vice President for Europe, Central Asia, Latin America and the Caribbean, and Global Financial Markets and Funds, said, “We are delighted that the project will support the growth of Ideal Invest, which is an innovative local entrepreneur. It will also help develop capital markets and mobilize additional private resources in education financing. IFC brings a unique combination of structuring and industry experience as well as education sector expertise to the transaction.”
Guy Ellena, IFC Director for Health and Education, said, “Inability to pay for tuition is the main reason for high student dropout rates in Brazil. The project will improve efficiencies in the education system by making tuition flows more predictable and available for participating universities and reduce dropout rates.”
IFC’s strategy in Brazil focuses on promoting access to finance and developing capital markets to reach low-income individuals, microenterprises, and small businesses. IFC seeks to strengthen infrastructure and public services, including health and education, by increasing private sector participation. Other key areas include improving the investment climate and helping small businesses join the formal economy. IFC also promotes socially and environmentally sustainable practices, specifically in the Amazon region. As of June 2009, IFC’s committed portfolio in Brazil was $2.2 billion.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Ideal Invest
Established in 2001, Ideal Invest was created to enable universities to raise funding by securitizing student receivables. In 2006, Ideal launched its student lending program, “Pravaler,” which has channeled more than R$135 million (approximately US$76 million) into student financing. Today, Pravaler serves students in more than 170 universities in 14 states. For more information, visit
http://idealinvest.com.br
/.
|