Washington, D.C./ São Paulo, Brazil,
November 16, 2009 – IFC, a member of the World Bank Group, will promote
access to student loans in Brazil with $12 million Brazilian Real (about
$6.7 million) equity investment in Brazil’s Ideal Invest. IFC’s
investment will help a large number of students gain access to their choice
of undergraduate programs. It will also help reduce the number of post-secondary
students dropping out of university because they cannot afford to pay tuition
Ideal Invest runs the "Pravaler" private student loan program
which offers students a competitive alternative to finance college tuition.
The program currently serves about 10,000 students in Brazil and Ideal
Invest plans to increase the reach of the program in the next several years.
Oliver Mizne, Founder and CEO, Ideal Invest said, “Student lending is
in its early stages in Brazil, but we believe the Pravaler private student
loan system is ready to be taken to a new level. With IFC as a shareholder,
we expect to help a significantly larger student pool, thereby accessing
a much larger capital base.” He added that Ideal Invest saw in the partnership
a great opportunity to accelerate the growth of the program.
Jyrki Koskelo, IFC Vice President for Europe, Central Asia, Latin America
and the Caribbean, and Global Financial Markets and Funds, said, “We are
delighted that the project will support the growth of Ideal Invest, which
is an innovative local entrepreneur. It will also help develop capital
markets and mobilize additional private resources in education financing.
IFC brings a unique combination of structuring and industry experience
as well as education sector expertise to the transaction.”
Guy Ellena, IFC Director for Health and Education, said, “Inability to
pay for tuition is the main reason for high student dropout rates in Brazil.
The project will improve efficiencies in the education system by making
tuition flows more predictable and available for participating universities
and reduce dropout rates.”
IFC’s strategy in Brazil 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. As of June 2009,
IFC’s committed portfolio in Brazil was $2.2 billion.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $15
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
About Ideal Invest
Established in 2001, Ideal Invest was created to enable universities to
raise funding by securitizing student receivables. In 2006, Ideal launched
its student lending program, “Pravaler,” which has channeled more than
R$135 million (approximately US$76 million) into student financing. Today,
Pravaler serves students in more than 170 universities in 14 states. For
more information, visit http://idealinvest.com.br/.