MICROCAPITAL BRIEF: International Finance Corporation (IFC) Arranges Syndicated Loan of $165m for Banco Daycoval to Improve Access to Finance for Small and Medium-Sized Enterprises in Brazil

The International Finance Corporation (IFC), a member of the World Bank Group, with the participation of 11 international banks, has arranged a syndicated loan of EUR 134 million (USD 165 million) for Banco Daycoval, a commercial bank based in Sao Paolo, with the aim of increasing access to finance for small and medium-sized enterprises in Brazil. The 11 international banks involved in the transaction are: Itau Europa, Standard Bank, HSBC, Calyon, Citibank, Oberbank, Banco Santander, Standard Chartered, WestLB, Commerzbank and ING.

As of 2009, Banco Daycoval had BRL 7.1 billion (USD 3.9 billion) in total assets, a total credit portfolio of BRL 3.9 billion (USD 2.2 billion) and a net income of BRL 211 million (USD 119 million).

By Conner Brannen, Research Assistant

About International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.

About Banco Daycoval:

Banco Daycoval is a Brazil-based commercial bank, founded in 1968, that provides personal and corporate banking services, including credit, investment banking, credit card, brokerage, trade bill collection and deposit services. The Bank specializes in lending to small and medium-sized enterprises. In addition, the Bank provides life, health, guarantee, business fire, car and risk insurance. It operates a total of 27 branches in 25 cities throughout 17 Brazilian states plus the Federal District. As of 2009, Banco Daycoval had BRL 7.1 billion (USD 3.9 billion) in total assets, a total credit portfolio of BRL 3.9 billion (USD 2.2 billion) and a net income of BRL 211 million (USD 119 million).

Sources and Additional Resources:

International Finance Corporation: “IFC Mobilizes 11 Banks in $165 Million Syndication for Brazil’s Banco Daycoval,” June 23, 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/0FBB931651BE09178525774B004A1654?OpenDocument

MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Banco Daycoval: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Daycoval

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $47m in Brookfield Incorporacoes to Increase Quality of Housing for Low-Income People in Brazil, June 21, 2010: https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-47m-in-brookfield-incorporacoes-to-increase-quality-of-housing-for-low-income-people-in-brazil/

MICROCAPITAL BRIEF: Brazilian Microfinance Sector Poised For Growth Following Annual 22 Percent Increase In Microborrowers since President da Silva?s Election, June 4, 2010: https://www.microcapital.org/microcapital-brief-brazilian-microfinance-sector-poised-for-growth-following-annual-22-percent-increase-in-microborrowers-since-president-da-silvas-election/

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