Press Releases

IFC provides $50 million to support Brazilian Airline TAM’s Expansion plans

Washington D.C.
Adriana Gomez

Phone: (202) 458 5204


Washington, D.C., December 21, 2005—The International Finance Corporation, the private sector arm of the World Bank Group, will provide a medium-term loan of US$50 million to TAM Linhas Aereas, to increase its services and improve its fleet. This will be IFC's first financing in the Brazilian airline sector.

IFC’s financing will consist of a US$33 million revolving credit facility for pre-delivery payments (PDPs) towards the purchase of Airbus A-320 family aircraft and a US$17 million working capital loan for aircraft parts.

TAM’s network and expansion is geared towards providing safe, efficient and cost-effective service to its passengers. By providing more frequent flights and more direct flights to many destinations in Brazil, and by substantially reducing the cost of air travel within Brazil, TAM has played a significant role in furthering business travel and inter-regional business within Brazil.

“We are very happy to participate in this important financing of TAM, an airline that has greatly contributed to the development of Brazil’s air passenger service and to the regional integration of Latin America’s air transportation networks,” said Francisco A. Tourreilles, director of IFC’s Infrastructure Department.

Recent IFC’s financings in the airline sector in the region include TACA in El Salvador, Lan in Chile, and Copa in Panama.

Atul Mehta, IFC’s Director for Latin America and Caribbean, also noted, “This financing shows IFC’s commitment to provide long-term and stable funding diversification to Brazilian companies. It also fits the Corporation’s strategy in Brazil, which places significant emphasis on encouraging private sector investment in infrastructure as a means to stimulate economic growth.”

“IFC’s financing honors our commitment to offering best services, competitive prices and optimized costs, with a modern fleet, maintaining excellence and intensive leading edge training”, said Marco Antonio Bologna, TAM’s CEO.”

IFC in Brazil

During fiscal year 2005, Brazil received the largest amount of IFC financing, in dollar value, among Latin American countries. IFC invested $591million, including $190 million in syndications, in sectors ranging from agribusiness and transportation to manufacturing and the financial sector. IFC’s total portfolio in Brazil was $913 million at June 2005.

IFC's strategy for Brazil focuses on enhancing clients' prospects for competitiveness and growth, improving the country's social equity through voluntary actions by the private sector, and continuing to promote sustainability.

These priorities entail investing in growing, export-oriented companies; helping Brazilian companies expand internationally (including through South-South investments); emphasizing infrastructure and logistics, notably public-private partnerships that expand services to poorer people; and helping build financial and capital markets. IFC also seeks to finance firms committed to environmental and social sustainability, to help improve corporate governance, and to support microfinance and socially-oriented entrepreneurship. Since 1956, when Brazil joined IFC, the Corporation has provided $7.45 billion, including syndications, for 162 companies.

About IFC

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C.  IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.  Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.  For more information, visit

About TAM

The largest Brazilian domestic airline with a 43.8% domestic market share in October 2005, TAM currently operates 435 daily flights to 44 cities, and serves 29 other cities via regional domestic alliances.   With its extensive domestic network and direct connections to important business destinations in South America, Europe and the United States, TAM has played a significant role in building and strengthening regional transportation infrastructure, and promoting increased business flows into and within Brazil.  For more information, visit