MICROCAPITAL BRIEF: International Finance Corporation (IFC) Arranges $470m in Loans for Itau Unibanco of Brazil for Women Entrepreneurs, Funded by Bank of America, Bank of Tokyo Mitsubishi, National Bank of Abu Dhabi, Development Bank of Japan

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced it will disburse a local-currency loan equivalent to USD 470 million to Itau Unibanco, a Brazilian bank, in an effort to increase the financial inclusion of women-owned enterprises in Brazil. The transaction, which is being channeled through IFC’s Banking on Women Program, includes a USD 100 million loan as well as a USD 370 million syndicated loan funded by Bank of America, Bank of Tokyo Mitsubishi, National Bank of Abu Dhabi and the Development Bank of Japan. IFC also plans to advise Itau Unibanco on developing financial products for female-owned small and medium-sized enterprises (SMEs).

According to a survey conducted by the World Bank and IFC, 45 percent of female-owned SMEs cite lack of access to financial services as a “major constraint in operating and growing their businesses.”

Since it’s launch in 2010, IFC’s Banking on Women program has made 20 investments worth a total of USD 165 million in Africa, Asia and Eastern Europe.

As of December 2012, Itau Unibanco reported total assets of BRL 1 trillion (USD 514 billion), a gross loan portfolio of BRL 339 billion (USD 174 billion), total deposits of BRL 243 billion (USD 125 billion), return on equity (ROE) of 18.4 percent and return on assets (ROA) of 1.4 percent. As of 2012, IFC has 184 member countries and total assets of USD 75.8 billion.

By Charlotte Newman, Research Associate

About Itau Unibanco
Itau Unibanco is a publicly quoted bank based in Sao Paulo, Brazil. The bank was formed by the merger of Brazilian banks Banco Itau and Unibanco, which occurred on November 4, 2008. Itau Unibanco operates in 20 countries and has approximately 97,000 employees as of December 2012. Itau Unibanco won the Financial Times’ (FT’s) and the International Finance Corporation’s (IFC’s) Award for Emerging Markets Sustainable Bank of the Year in 2009 and 2010, Sustainable Bank of the Year in 2011, and Sustainable Bank of the Year–Americas in 2012. As of December 2012, Itau Unibanco reported total assets of BRL 1 trillion (USD 514 billion), a gross loan portfolio of BRL 339 billion (USD 174 billion) total deposits of BRL 243 billion (USD 125 billion), return on equity (ROE) of 18.4 percent and return on assets (ROA) of 1.4 percent.

About International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC has 184 member countries, total assets of USD 75.8 billion, return on assets of 1.8 percent, return on capital of 6.5 percent and USD 15.5 billion mobilized to 576 projects.

Sources and Additional Resources:

International Finance Corporation press release: “IFC and Itau Unibanco Close Partnership to Invest $470 Million to Finance Women Entrepreneurs in Brazil,” http://www.ifc.org/ifcext/Pressroom/IFCPressRoom.nsf/0/7406848354A21E5085257B80004FB513

MicroCapital.org story, June 6, 2013, “MICROCAPITAL BRIEF: International Finance Corproation (IFC), European Investment Bank (EIB), Agence Francaise de Developpement (EFD), European Commission Establish $380m Middle East, North Africa Small, Medium-Sized Enterprises Facility,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-european-investment-bank-eib-agence-francaise-de-developpement-afd-european-commission-establish-380m-middle-east-north-africa-smal/

MicroCapital.org story, March 11, 2013, “MICROCAPITAL BRIEF: Itau Unibanco of Brazil Commits $167m to Microloans for Urban Entrepreneurs in Concert with Business Call to Action, UN Millennium Development Goals,” https://www.microcapital.org/microcapital-brief-itau-unibanco-of-brazil-commits-167m-to-microloans-for-urban-entrepreneurs-in-concert-with-business-call-to-action-un-millennium-development-goals/

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