São Paulo and Washington, D.C., July
17, 2013 - IFC, a member of the World Bank Group, announced an investment
of $275 million to Banco Daycoval S.A, which will expand access to finance
for small and medium enterprises (SMEs) in Brazil.
The financing involves an IFC five-year
$50 million equivalent local currency-indexed (A loan) and a syndicated
loan composed of three tranches: two denominated in US dollars for $184,5
million, and one denominated in Euros in the amount of €30,5 million (B
loan). The syndicated loans mature in two and three years.
This is IFC’s largest syndicated loan
to a bank specialized in corporate credit in Brazil. Twelve banks participated
in the syndicated loan: Itaú BBA International, Standard Chartered, Banco
do Brasil AG, Wells Fargo, Banco Bradesco Europa, Commerzbank, ING, Santander,
Goldman Sachs, Oberbank, Aka Bank and Israel Discount Bank. It is also
the fourth IFC loan to Daycoval, a client since 2006 and an IFC investee
company since April 2013, when IFC became a shareholder through the conversion
of the warrants it held since March 2009.
The IFC loan will be used exclusively
to provide loans to companies located in the less developed parts of Brazil,
specially the Northeast and North regions, while the resources from the
syndicated loan can be used to finance SME’s countrywide.
In the North and Northeast regions,
Daycoval works with branches in Amazonas, Alagoas, Bahia, Ceará, Pará,
Paraíba, Pernambuco, Rio Grande do Norte and Sergipe. According to Ricardo
Gelbaum, Daycoval’s Investor Relations officer, IFC’s loan will contribute
to increase Daycoval’s operations in those regions. “Data from Central
Bank of Brazil shows that the GDP in the Northeast region, for example,
grew 2% during the first quarter of 2013, while the average of the country
grew only 1.05%. This happened due to the growth of income and employment
as well as of new business in that region. Daycoval is aware of these great
opportunities and focused on the partnership with small and medium enterprises
in those regions”.
“Banco Daycoval has been a key partner
to IFC for achieving our strategic goal of increasing access to finance
for SMEs, in Brazil” said Giri Jadeja, IFC Senior Manager for Financial
Markets. “We look forward to continuing this long-term partnership with
Banco Daycoval to support its expansion reaching out SMEs, important
contributors to job creation and economic growth.”
SMEs account for about 90 percent of
businesses and more than 50 percent of employment worldwide. They play
a major role in creating jobs and generating income for low income people;
they foster economic growth, social stability, and contribute to the development
of a dynamic private sector. As such, access to financial services is vital
in developing a vibrant SME sector in any economy. In Brazil, IFC has made
available for its own account since 2004 around $4.6 billion equivalent
to mid-sized banks in the form of equity, long-term debt, and trade finance
guarantees to encourage investment in SMEs.
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, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
Banco Daycoval is specialized in corporate
credit. In the end of first quarter, had more than 180 points of distribution:
36 branches, 49 retail stores, 59 exchange bureaus/correspondents and 37
Daypag offices. Daycoval is Investment Grade by Moody’s and Fitch Ratings
and announces Net Income of R$ 65.7 million in the first quarter of 2013.
More information www.daycoval.com.br/ri.