São Paulo, December 13, 2010—IFC,
a member of the World Bank Group, today announced the signing of an equity
investment of up to approximately US$20 million in Banco Triângulo S.A,
or Tribanco, supporting a long term partnership and helping provide financing
for micro, small, and medium enterprises. The investment will help Tribanco,
one of Brazil’s leading providers of supply chain financing, double its
size in the next three years while expanding its reach to small entrepreneurs,
which are essential to Brazil’s economic development and social well-being.
IFC’s equity investment in newly issued
common shares of Tribanco supports a partnership that began six years ago
when IFC provided $25 million in funding to the bank. IFC’s new role as
an independent shareholder marks an important step in strengthening corporate
governance at Tribanco, which is family owned.
“IFC’s investment provides a stamp of approval that will help Tribanco
access international capital markets,” said João Rabello, Tribanco’s
CEO. “We are well-known in Brazil, but need more exposure outside the
country. Though Tribanco has a comfortable capital base, IFC’s investment
will further increase its leverage capacity, given the promising growth
outlook for the Brazilian market.”
Brazil’s micro, small, and medium enterprises account for over half of
all formal employment and close to 20 percent of the country’s gross domestic
product. Small shops known as “varejos” are widely scattered throughout
the country and account for over half of Brazil’s total retail food sales.
Still, they have been mostly neglected by the banking industry. By supporting
Tribanco, IFC is helping address this gap and extend access to finance
to micro, small, and medium enterprises.
Loy Pires, IFC Country Manager for Brazil, said, “IFC’s equity financing
marks a historic step in the strategic relationship between both institutions
and will send a strong signal of support to the market. This signal is
key, given Tribanco’s significant future funding needs which will support
micro, small and medium retail businesses. This investment is also part
of IFC's strategy to promote inclusive growth and opportunities in Brazil
by expanding access to finance for these small businesses, a key engine
of growth and job generation in the country.”
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
Tribanco was founded in 1990 and is part of the Sistema Integrado Martins,
or SIM, a group of companies that provide wholesale distribution, training,
and financial services to the largest supply chain in Brazil. Tribanco
is a specialized medium-sized bank that serves micro, small, and medium-sized
retail outlets as well as medium-sized manufacturers and low-income consumers.
Tribanco’s business model leverages SIM’s market footprint, industry
know how, and distribution capacity to deliver a value proposition to customers.
For more information, visit www.tribanco.com.br