Washington, D.C., October 8, 2009—IFC,
a member of the World Bank Group, will provide $15 million to Brazil’s
Banco Triāngulo S.A. to help expand credit for micro and small entrepreneurs
in the underdeveloped areas of Brazil’s north and northeast.
IFC’s local currency financing will have a five-year tenor, unusually
long for midsize Brazilian banks under current market conditions. This
will be IFC’s second financing to the bank, known as Tribanco, which received
a $10 million loan in 2004. Tribanco is part of Grupo Martins, a
large wholesaler in Brazil. It was created in 1990 to provide a wide
range of financial services for small retailers and is now one of the largest
microfinance providers in Brazil.
“We are extremely pleased with IFC’s value added, as it provides a longer
tenor than is available normally in Brazil, and further diversifies the
bank’s funding sources,” said Tribanco’s Board President Juscelino Martins.
“We look forward to building on our long-term partnership with IFC.”
Andrew Gunther, IFC Country Manager in Brazil, said: “IFC’s financing
will strengthen Tribanco’s funding structure, which is essential to expand
the bank’s lending to small retail outlets that provide basic goods and
services to Brazil’s low-income population in small cities and remote
rural areas. This financing is consistent with IFC’s priority of
supporting microfinance development in Brazil.”
As part of IFC’s integrated approach to provide financing and advisory
services, IFC is working with Tribanco to develop training material for
the bank’s staff and clients to help improve their skills and competitiveness.
One key achievement has been the development of financial literacy
modules with the local nongovernmental organization Instituto Akatu, which
will be available to clients through booklets and e-learning.
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 June 2009, IFC’s committed portfolio in Brazil was
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 private capital, 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.
Tribanco, a subsidiary of Grupo Martins, provides a wide range of financial
services to small shop owners and suppliers of Grupo Martins, the largest
wholesaler distributor in Latin America. Tribanco has $670 million in total
assets, with a loan portfolio of $440 million and a $166 million equity
base. Its credit portfolio composition is 56 percent small retail shops,
21 percent suppliers, and 23 percent consumer lending. It holds a full
banking license and operates under the full supervision of the Brazilian
Central Bank. For more information, visit: http://www.tribanco.com.br/.