Washington, D.C. / São Paulo, July 19,
2011 – IFC, a member of the World Bank Group, completed today an equity
investment in Banco Fibra S. A. in the amount of R$80 million (approximately
US$50 million) to support credit expansion to small- and medium-size enterprises
in Brazil. The IFC African, Latin American, and Caribbean (ALAC) Fund,
managed by the IFC Asset Management Company, committed to invest an additional
R$80 million to also become a Banco Fibra shareholder.
With their combined investment of R$160
million (approximately US$100 million) in Banco Fibra S.A., IFC and the
IFC ALAC Fund confirm their confidence in the Bank’s business model. IFC
has held 7.9% of the Bank’s capital since 2007 and, with the new IFC investment
of R$80 million, it will own approximately 13% of the Bank´s shares.
“The IFC and IFC ALAC Fund investments
will support the expansion of Fibra’s long-term funding, helping our growth
strategy for corporate and retail credit,” said Antonio Francisco de Lima
Neto, CEO of Banco Fibra. “We are delighted with our partnership with
IFC, which began in 2007 and which has brought major benefits to our governance,
and has greatly contributed with knowledge and expertise to our management,”
noted Ricardo Steinbruch, Chairman of the Board of Directors of Banco Fibra.
“Our support to Banco Fibra is part
of IFC’s strategy of providing long-term investments to well managed banks
that promote access to finance for small and medium-size enterprises, an
important engine for growth and job creation” said Paolo Martelli, IFC
Director for Latin America and the Caribbean. “In addition, IFC
plays a key role in helping to enhance corporate governance practices,
risk management and social and environmental standards in our client companies.
ALAC’s participation in this project is also an important component of
IFC’s objective to mobilize third-party funds to maximize the impact of
our investments,” he said
With the new IFC investment and ALAC's
entry as a new shareholder, the combined participation of minority shareholders
will reach 20% of Fibra's capital. Grupo Vicunha will maintain its position
as majority shareholder, with 80% of the shares. “These new capital increases
will raise Banco Fibra’s net shareholders’ equity to a new level, greater
than R$ 1 billion, with a pro-forma Basel index of 14.2% in May, enabling
an increase of the credit portfolio of as much as R$ 3.4 billion,” concluded
The capital investments are subject
to the approval of the appropriate Brazilian authorities.
In Brazil, IFC’s strategy 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.
About Banco Fibra
Fibra, a multiple-services bank, was
established in 1988. One of its main focus is on the credit segment for
medium-size companies (those with sales mainly between R$ 40 million and
R$ 400 million) and for individuals, in particular for the financing of
consumer goods, payroll or pension deductible loans, and vehicle financing.
It is controlled by Grupo Vicunha, a recognized financial group active
in Brazil for over 40 years. Among other investments, Vicunha has corporate
control of Vicunha Têxtil (textiles), CSN (steel) and Fibra Experts (real
estate). For more information please visit: www.bancofibra.com.br.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a
wholly-owned subsidiary of IFC, invests third-party capital, enabling outside
investors to benefit from IFC’s expertise in achieving strong equity returns
as well as positive development impact in the countries in which it invests.
It manages the $3 billion IFC Capitalization Fund as well as the IFC ALAC
About the IFC African, Latin American,
and Caribbean Fund
The IFC ALAC Fund is a $1 billion fund
that invests alongside IFC in equity investments in Sub-Saharan Africa,
Latin America and the Caribbean. It provides long-term growth capital for
private enterprise in these regions.