Washington, D.C., June 23, 2010 —
IFC, a member of the World Bank Group, has arranged a syndicated loan of
up to $ 165 million to Brazil’s Banco Daycoval S.A., with the participation
of 11 international banks, to increase access to finance for small and
medium enterprises in the country.
This is the first syndicated loan for a mid-size Brazilian bank since the
inception of the financial crisis in 2008. Mid-size banks are an important
source of financing for SMEs in Brazil, which employ over two thirds of
the 35 million formal jobs in the country. Daycoval has been an IFC
client since 2006.
The transaction involves a four year IFC $25 million equivalent local currency-indexed
A loan and a syndicated loan composed of four tranches: two denominated
in United States dollars for $110 million, and two denominated in Euros
in the amount of € 23.5 million. The syndicated loans mature in
two and three years. Itaú Europa, Standard Bank and HSBC acted as
Bookrunners and Mandated Lead Arrangers for the transaction, while IFC,
Itaú Europa and Standard Bank were responsible for the syndication process.
“This new IFC financing will help diversify Daycoval’s funding sources
and increase its duration, while creating a robust base to maintain our
support to Brazilian SMEs”, said Morris Dayan Investment Relations Director.
“We confirm once again that IFC is a long-term partner to Daycoval. We
believe that part of the success of this transaction was due to the bank’s
conservative strategy and its solid capital structure”.
Participants in the syndication for the US dollar tranches are: Itau Europa,
Standard Bank, HSBC, Calyon, Citibank, Oberbank, Santander and Standard
Chartered. Participants in the Euro tranches are WestLB, Commerzbank
“The syndication to Daycoval shows IFC’s capacity to mobilize resources
for financial institutions that play a key role in economic development
and job creation in Brazil,” said Andrew Gunther, IFC Country Manager
in Brazil. “This capacity is particularly important during periods of
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 May 2010, IFC’s
committed portfolio in Brazil was $2.4 billion.
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 capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totaled $14.5 billion in fiscal 2009, helping channel
capital into developing countries during the financial crisis. For more
information, visit www.ifc.org.
Banco Daycoval S.A. is a financial institution
that specializes in the Middle Market segment and has significant activity
in the retail business. Headquartered in São Paulo, it has 28 branches
in 24 cities of 17 states across Brazil. In first-quarter 2010, its credit
portfolio reached R$4.2 billion, with consolidated total assets of R$7.6
billion and net income of R$54.6 million. For 2009, Daycoval Net Income
reached R$211 million. Daycoval pursues a conservative strategy and stands
out for high liquidity and low leverage, as evidenced by its Basel II Ratio
of 27.2% in March 2010.
In December 2009 the Brazilian Central
Bank’s ranking of all private-sector banks put Daycoval in 13th place
by shareholders’ equity and 30th by total assets less financial intermediation
income. Daycoval has won important ratings, including an “A+” from Fitch
Ratings, “brAA-” from Standard & Poor’s, all of which are national
scale long-term ratings. On the Golbal Scale, for both rating agencies,
Daycoval is rated BB for the Long Term.