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Washington, DC, June 25, 2007
— IFC, the private sector arm of the World Bank Group, today signed an agreement to invest in Banco Fibra, S.A. The equity investment of up to $20 million, through the subscription of Banco Fibra’s new common shares, will help the bank play a more effective role in developing the country’s private sector. The IFC investment is still subject to approval from the Brazilian authorities.
Banco Fibra, a leading midsize national bank in Brazil, is increasing its focus in less developed areas of the country. In conjunction with this transaction, IFC has also approved a seven-year, $30 million local currency loan, which is expected to be committed in the coming weeks.
“We are pleased to have IFC as a long-term partner at this critical stage of our growth,” said João Rabêllo, CEO of Banco Fibra. “This relationship will enable us to improve our corporate governance practices, which will be instrumental in the bank’s listing in the future.”
“IFC has a clear role in supporting midsize banks, given their ability to innovate and reach small and medium enterprises and other niche markets. Banco Fibra’s professionalism and strategic focus make it an excellent fit with IFC’s objective to promote competition and improve efficiency in the country's banking sector,” said Atul Mehta, IFC Director for Latin America and the Caribbean.
Jyrki Koskelo, IFC Director for Global Financial Markets, added, “This transaction showcases IFC’s client-centric business model. Being close to the client in Brazil allowed us to understand its needs and prepared us to process a complex transaction in a short timeframe.”
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
.
About Banco Fibra
Banco Fibra is a midsize bank in Brazil that focuses on commercial banking and consumer loans. Founded in 1988, the bank is owned by the Steinbruch family, which also holds assets in the textile, steel, and real estate sectors. As of March 30, 2007, Banco Fibra reached $215 million in equity and $4.05 billion in total assets. For more information, please visit
www.bancofibra.com.br
.
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