MICROCAPITAL BRIEF: International Finance Corporation (IFC) Syndicates $81m Loan for Banco Industrial do Brasil (BIB) to Support Small, Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the World Bank Group, recently announced it has arranged a loan package of USD 81.2 million for Banco Industrial do Brasil (BIB). Of this amount, Switzerland-based responsAbility Investments, Germany’s Commerzbank, Brazil’s Itaú BBA International and US-based Sunstate Bank will supply a total of USD 34.5 million with a term of two years [1]. IFC is providing the remainder of the funds for five years as follows: USD 26.7 million from IFC’s internal accounts and USD 20 million from the IFC Managed Co-Lending Portfolio Program, a facility that allows institutional investors to participate in IFC’s senior-loan portfolio [6].

USD 20.3 million of the total is earmarked for small, medium-sized enterprises run by women, as part of the Women Entrepreneurs Opportunity Facility (WEOF), a collaboration between Goldman Sachs 10,000 Women and IFC’s Banking on Women program. Launched in 2008, the 10,000 Women initiative aims to partner with financial services providers to deliver 10,000 “underserved” women education in business and management, financial advisory services, and access to capital. Goldman Sachs is a US-based financial firm reporting total capital of USD 98 billion as of 2017. From its launch in 2014 until 2016, WEOF has committed approximately USD 600 million to banks in 17 countries [5].

Founded in 1994, BIB is a privately-owned commercial bank based in São Paulo. The bank, which specializes in financing small and medium-sized enterprises, reports total assets of BRL 2.81 billion (USD 883 million) as of 2016 [3, 4, 7].

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2016, it has 184 member countries and total assets of USD 90.4 billion [2].

By Matthew O’Neill, Research Associate

Sources and Additional Resources:

[1] IFC Invests in BIB:
http://ifcextapps.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf

[2] MICROCAPITAL BRIEF: IFC Lending $5.6m to Romania’s Garanti Leasing to Finance Women-owned SMEs:
https://www.microcapital.org/microcapital-brief-ifc-lending-5-6m-romanias-garanti-leasing-finance-women-owned-smes/

[3] MICROCAPITAL BRIEF: In Partnership With Banco Itaú Europa, Commerzbank, Israel Discount Bank and Banco Security, International Finance Corporation (IFC) Syndicates $45m to Banco Industrial do Brasil (BIB) to Support Small and Medium-Sized Enterprises (SMEs):
https://www.microcapital.org/microcapital-brief-in-partnership-with-banco-itau-europa-commerzbank-israel-discount-bank-and-banco-security-international-finance-corporation-ifc-syndicates-45m-to-banco-industrial-do-brasil/

[4] BIB Financials, 2016:
http://ir.bancoindustrial.com.br/enu/259/BIB%20-%20Financial%20Stataments%202016.06.pdf

[5] MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Lending $49m to Mongolia’s XacBank in Partnership with Women Entrepreneurs Opportunity Facility of Goldman Sachs 10,000 Women, IFC:
https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-lending-49m-mongolias-xacbank-partnership-women-entrepreneurs-opportunity-facility-goldman-sachs-10000-women/

[6] MICROCAPITAL BRIEF: International Finance Corporation (IFC), Global Agriculture and Food Security Program, Sumitomo Mitsui Banking, Managed Co-Lending Portfolio Program to Loan $110m to Cambodia’s Acleda for Agricultural Lending:
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-global-agriculture-and-food-security-program-sumitomo-mitsui-banking-managed-co-lending-portfolio-program-to-loan-110m-to-cambodia/

[7] IFC Raises $45 Million for BIB:
http://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site

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