São Paulo, Brazil, July 29, 2010
– IFC, a member of the World Bank Group, has arranged$135 million in syndicated loans for Banco Fibra , supporting diversification of the bank’s international funding sources and helping expand its services for small and medium enterprises in Brazil. IFC is a minority shareholder of Banco Fibra with a 7.9 percent stake. This syndication represents the third such transaction with Fibra.
The syndication, jointly arranged with Banco Itaú Europa and Banco Santander, consists of $15 million in loans from IFC’s account and two tranches of syndicated loans from a consortium of 11 international banks: a dollar denominated loan totaling $96 million and a euro denominated loan totaling €20 million. Other participant banks include Banco Itaú Europa, Banco Santander, ING, Citibank, Commerzbank, Banca Intesa, Banco Security, BAC Florida, Banco Espírito Santo, Oberbank, and HSBC..
Antonio Francisco de Lima Neto, CEO of Banco Fibra said, “IFC’s support and the support of the participating banks show their mobilization capacity to provide resources for financial institutions that have an important role in the development of the Brazilian economy.”
“IFC is pleased to continue strengthening its partnership with Banco Fibra by helping diversify its funding sources and positioning it as a strong player in Brazil’s financial sector,” said Andrew Gunther, IFC Country Manager for Brazil. “Through this partnership, IFC supports Fibra’s role in addressing the financial needs of small and medium enterprises and other niche markets in Brazil.”
In Brazil, IFC’s strategy 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 2010, IFC’s committed portfolio in Brazil was $2.4 billion.
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 Fibra
Fibra is a multiple-service bank, established in 1988, specializing in extending credit to middle- and upper middle-market companies, with annual sales ranging from $40 million to $400 million, and to the consumer retail credit segment. . The bank is controlled by Vicunha, a leading diversified company in Brazil.
