São Paulo, February 4, 2016 — IFC, a
member of the World Bank Group, is providing a US$375 million financing
package for Bradesco, one of the largest private banks in Brazil, to expand
access to finance for small and medium enterprises and help boost the growth
of a sector that plays a critical role in the Brazilian economy.
IFC’s financing consists of a 5-year US$
150 million loan for IFC’s own account, and a 3-year US$ 225 million syndicated
loan. The syndicated lenders are Banco Santander, S.A., Commerzbank Aktiengesellschaft,
and National Bank of Abu Dhabi PJSC, with respectively US$ 90, 75 and 60
million participation.
This investment will help Bradesco continue
to expand its investments in small and medium enterprises (SMEs) that are
part of Arranjos Produtivos Locais (APLs), which are clusters of companies
organized by the Brazilian government according to geographic areas and
specific productive activities. Bradesco is a financial solutions provider
for APLs, which are located in 2,175 municipalities in Brazil and account
for over 3 million jobs in 59 different economic sectors.
Small and medium enterprises (SMEs) are vital
for Brazil’s economic and social development, as they generate jobs and
provide essential goods and services, fostering economic growth and contributing
to a dynamic private sector. They account for 20% of Brazil’s GDP and
52% of its formal jobs. Yet, more than 70% of SMEs do not have the credit
needed to grow their business and increase their productivity. Thus, access
to financial services is vital in closing that gap and further developing
the Brazilian economy. With IFC’s support, our clients in Brazil provided
approximately US$ 38.5 billion to SMEs in 2014.
“We welcome IFC’s financing as it will
greatly support the expansion of our investments in small and medium enterprises”,
comments Marlene Millan, Bradesco Executive Director. She adds that “this
investment demonstrates the confidence that IFC and the international banks
have both in Bradesco and in Brazil.”
“IFC is pleased to partner with Bradesco
on this project. Access to finance for SME’s is a key element of our strategy
to promote inclusive economic growth and help foster Brazil’s sustainable
development,” stated Ariane Di Iorio, IFC Head of Financial Institutions
Group in Brazil, adding that “Bradesco’s strategic focus on SMEs allied
to its countrywide distribution network will contribute significantly to
maximize the reach of this financing and help expand access to finance
in Brazil.”
IFC has been investing in Brazil’s private
sector since 1956 to address the country’s most critical development challenges,
including those of the urbanization, social inclusion, competitiveness
and productivity, and management of natural resources.
About Bradesco
Bradesco is one of the leading banks in the
Brazilian financial sector with BRL 1.0 trillion in total assets and 67.8
million clients. It was founded in 1943, expanded and developed in tandem
with the economic cycles the country underwent. It has a broad attendance
network with over 74,000 service points throughout the whole country.
Customer service is segmented by specialist areas in line with the profile
of each client. Bradesco´s business model is marked by a commitment to
good corporate governance practices, with a dividend policy that offers
shareholders an attractive return, and recognition for its activities in
social and environmental issues. Bradesco also has a thriving presence
on the international market, with branches in New York, London, Grand Cayman
and subsidiaries in Buenos Aires, México, Grand Cayman, New York, London,
Luxemburg, Tokyo and Hong Kong. This is backed up by an extensive network
of International Correspondent banking outlets.
About IFC
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in about 100 countries, we use
our capital, expertise, and influence to help eliminate extreme poverty
and boost shared prosperity. In FY14, we provided more than $22 billion
in financing to improve lives in developing countries and tackle the most
urgent challenges of development. For more information, visit www.ifc.org
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