Washington, D.C., November 16, 2009—IFC,
a member of the World Bank Group, has signed an agreement to provide $25
million in local currency financing to Brazil’s Banco Industrial e Comercial
S.A. to support its lending to small and medium health and education service
Known as Bicbanco, the bank is among
Brazil’s leading midsize banks with one of the largest health and education
loan portfolios in the country.
The five-year financing will be provided
through a cross-border local currency Real-linked structure. It will help
Bicbanco reach a broader range of small and medium enterprises, including
those located in remote areas of the country. Bicbanco also will receive
access to and share with its clients IFC’s health and education expertise
and tools aimed at improving quality standards.
Paulo Celso, Executive Vice President,
Bicbanco, said, “We are happy to partner with IFC, whose unique combination
of local currency financing and health care and education expertise will
enhance our competitive advantage in supporting small and medium enterprises
operating in these sectors.”
Jyrki Koskelo, IFC Vice President for
Europe, Central Asia, Latin America and the Caribbean, and Global Financial
Markets and Funds, said, “This transaction supports the operations of
midsize Brazilian banks through diversification of funding and complements
IFC’s strategic relationship with Bicbanco. It also gives IFC the opportunity
to launch its wholesale health and education strategy in Brazil.”
Wholesale facilities with partner banks
allow IFC to reach a large number of providers serving all segments of
the population. The transaction also fits IFC’s strategy of expanding
access to finance for small and medium enterprises in the health and education
sectors. It complements IFC’s long-term relationship with Bicbanco, which
is the largest user of IFC’s global trade finance program in Latin American
and the Caribbean.
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 $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
About Banco Industrial e Comercial
S.A. - Bicbanco
One of Brazil’s oldest private banks, Bicbanco is a leading provider of
funding to small and medium enterprises in Brazil. It is the fifth-largest
national private bank serving midsize companies. The bank’s main lines
of products are working capital, secured loans, trade finance, and public
employee loans. For more information, visit www.bicbanco.com.br.