São Paulo, Brazil, December 22, 2017
— IFC, a member of the World Bank Group, is providing a $150 million
loan to Banco Santander Brasil to boost access to finance for small and
medium enterprises (SMEs).
SMEs represent 99 percent of all companies
in Brazil. They are engines of job creation, generating 54 percent of formal
jobs and accounting for 27 percent of the country’s gross domestic product.
In the first three quarters of 2017, they generated more than 389,000
IFC’s financing consists of a one-year $150
million loan from IFC’s own-account denominated in Brazilian local currency,
which can be renewed twice for a total of up to three years.
"By supporting small and medium-sized
enterprises, we are taking part in the process of recovery of the country's
growth, which is already in progress", says Ede Viani, Director
of Corporate, Governments & Institutions and Agribusiness at Banco
Santander Brasil. "Partnering with IFC enables us to expand entrepreneurial
credit, which is critical to business development."
Santander Brasil is a leading source of financing
for SMEs in the country, having registered a 2.2% growth in its SMEs portfolio
in the last 12 months (until September). In addition to a wide range
of financing options to SMEs, Santander also offer them the Programa Avançar,
comprised of training, guidance and information to help SMEs expand their
businesses, including to international markets, among other features.
“Financial inclusion plays a vital role
in economic development. It can improve people’s lives in measurable ways
by generating income and economic activity,” says Ramiro Garcia, IFC’s
Head of Financial Institutions Group for Brazil and the Southern Cone.
“We are glad to partner with Banco Santander, a leader in Brazil’s
financial sector which has demonstrated commitment to supporting small
and medium businesses”.
IFC has been investing in Brazil’s private
sector since 1957 to address the country’s most critical development challenges,
including those of the urbanization, social inclusion, competitiveness
and productivity, and management of natural resources.
Operating in the local market since 1982,
Banco Santander Brasil is one of the largest banks in the national financial
system and the only international institution with a large retail scale.
It has almost 37 million customers, approximately 46 thousand employees
and a network of more than 3.4 thousand branches and mini-branches. It
operates in Brazil on two major fronts: the commercial bank, which gathers
retail activities, such as individuals and small and medium-sized enterprises,
and wholesale, focused on large companies and operations in the capital
market. Santander Brasil is part of the Santander Group, the main financial
conglomerate of the Euro Zone, with a strong presence in Latin America.
IFC, a sister organization of the World Bank
and a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,