São Paulo, Brazil, June 30, 2008—IFC,
a member of the World Bank Group, today announced that it has successfully
closed a syndication deal that will help Banco BBM, a leading midsize bank
in Brazil, expand its activities targeting midsize companies, a key segment
of the economy.
Banco Real and Standard Chartered Bank
led the $150 million syndication along with IFC. Ten international banks
from eight countries will also participate in the three-year funding.
João Carlos Pinho, Funding and Institutional
Relationship Director of Banco BBM, said, “Through this syndication, IFC
is playing a catalytic role in making longer-tenor credit available to
Brazil’s midsize corporate borrowers to help improve their operations.
We are extremely pleased that this transaction demonstrates the resilience
of leading midsize Brazilian banks like ours.”
Andrew Gunther, IFC General Manager
in Brazil, said, “Despite uncertainty in global financial markets, this
transaction demonstrates that well-run Brazilian banks can still access
competitively priced funding to support their growing credit operations.
We are pleased that several international banks have joined IFC in this
IFC’s first local currency loan in
Brazil was with Banco BBM in June 2006. Since then, IFC has provided about
$650 million equivalent of local currency financing to nine local, mostly
midsize banks. This funding was complemented by about $550 million in syndicated
medium-term credit that IFC helped mobilize from international banks.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people should
have the opportunity to escape poverty and improve their lives. In FY07,
IFC committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Banco BBM S.A.
Banco BBM is a leading midsize Brazilian
bank, with a strong business franchise in credit origination and structuring,
asset management, and risk management products. It is oldest private sector
bank in Brazil and regarded as one of the country’s best-run financial
entities. It was also the country’s sixth-largest domestic privately owned
bank in terms of total assets at the end of 2007. The bank’s assets reached
the equivalent of $8.4 billion, and its net worth was $579 million at the
end of March 2008. Its main shareholder is the Mariani Group.