The International Finance Corporation (IFC), the investment arm of the World Bank Group, a multilateral development finance organization based in Washington, DC, recently disbursed a syndicated loan equivalent to USD 45 million to Banco Industrial do Brasil (BIB), a commercial bank based in São Paulo, Brazil, with the intent of increasing financing initiatives for small and medium-sized enterprises (SMEs) in Brazil.
The funds were raised through a syndication of four banks including lead arrangers Banco Itaú Europa, a credit institution focusing on developing markets based out of Lisbon, Portugal, and Commerzbank, a German commercial bank based in Frankfurt. Also participating are Israel Discount Bank, a commercial bank based in New York, and Banco Security, a Chilean commercial bank based in Santiago. The loan comprises three tranches: a three-year loan of USD 15 million from IFC and two-year loans of USD 19 million and EUR 7.7 million (USD 10.5 million) from the syndicate.
Eduardo Guimarães, Executive Finance Director for BIB, said “adequate and diversified funding is fundamental for us to confidently expand operations to small and medium enterprises.” As of 2010, BIB reported total assets of BRL 1.47 billion (USD 881 million) [1].
By John Howard-Smith, Research Associate
About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance intended to alleviate poverty and promote open and competitive markets in developing countries. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion. For more information, see MicroCapital’s wiki on the World Bank Group: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
About Banco Industrial do Brasil (BIB): Founded in 1994, Banco Industrial do Brasil (BIB) is a privately-owned commercial bank based in São Paulo that offers financing to small and medium-sized enterprises. The policy of the bank is to employ a conservative lending policy to promote sustainable growth. As of 2010, BIB reported total assets of BRL 1.47 billion (USD 881 million).
[1] IFC Press Release: “IFC Raises $45 Million for Banco Industrial do Brasil to Support Access to Finance for Smaller Businesses”, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=7A0B610C705461CE8525782B005B6FA0
MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
MicroCapital’s Microfinance Universe profile: Banco Industrial do Brasil (BIB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Industrial+do+Brasil+(BIB)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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