São Paulo, October 7, 2014 - IFC,
a member of the World Bank Group, announced it will provide
US$ 125 million to Banco BBM S.A. in loans and guarantees to expand
access to finance for medium-sized corporations in Brazil’s agribusiness
IFC’s loan totals US$ 100 million and
consists of a 5-year US$ 50 million loan, a 3-year US$ 25 million syndicated
loan, and a 5-year US$ 25 million loan through the IFC Managed Co-Lending
Portfolio Program, a new syndications platform that offers institutional
investors the ability to passively participate in IFC’s future senior
loan portfolio. Banco Bradesco Europa S.A. and Israel Discount Bank of
New York are the syndicated lenders.
BBM has also joined IFC’s Global Trade
Finance Program with a US$ 25 million line, to expand access to trade finance
to its clients. IFC’s Program supports trade in emerging market countries
by providing partial or full guarantees for individual trade transactions,
through an effective mitigation instrument, the IFC’s triple-A credit
Support to the growth and development
of the agribusiness sector is one of the priorities of IFC’s global strategy
as it plays a critical role in alleviating poverty, reducing income inequality,
and promoting a sustainable increase in food availability. Agribusiness
has been one of the most dynamic sectors of the Brazilian economy and represents
one of its major competitive strengths, accounting for approximately 20%
and 40% of Brazil’s gross domestic product and exports, respectively.
The sector is a major source of employment generation in the rural areas
of the country, where opportunities are scarce.
“We acknowledge that IFC has been an
important partner for BBM in the last years. At this time, IFC’s support
will strengthen BBM’s market position, enabling the bank to provide the
long-term financing that agribusiness clients require”, says Cassio Von
Gal, BBM Director. “We also appreciate the participation of Bradesco and
Israel Discount Bank in this operation”.
“This is IFC’s fourth investment in
BBM. We are pleased to continue to work with the bank to help increase
access to finance for medium-size agribusiness companies with focus on
the Central, South and Southeast regions of the country”, says James Smouse,
IFC Head of Financial Institutions Group in Brazil. “In addition to supporting
a committed partner in the agribusiness sector in Brazil, this financing
also gives us the opportunity to contribute to enhancing social and environmental
standards in the sector, which plays a key role in the country’s economy.”
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 FY14, our investments reached an all-time high of more than $22 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
About Banco BBM
Banco BBM is a Brazilian medium size
bank focused on structured credit transactions and wealth management. BBM’s
global and local credit rating by Moody’s has remained stable since 2009
and the Bank is rated one notch below investment grade by Moody’s (Ba1)
on the international scale. On the local scale, the Bank’s rating is Aa2.br.
It announced Net Income of R$ 17.3 million in the first semester of 2014.
More information http://www.bbmbank.com.br.