MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $20m in Banco Triângulo SA (Tribanco) to Support Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs) in Brazil

International Finance Corporation (IFC), the private sector arm of the World Bank Group, is making a USD 20 million equity investment in newly issued common shares of Banco Triângulo SA (Tribanco), a Brazilian bank that primarily serves small businesses. IFC’s investment in Tribanco supports a partnership that began six years ago when IFC provided USD 25 million in funding to the bank.

Tribanco, owned by Brazilian supply-chain conglomerate Sistema Integrado Martins (SIM), serves micro-, small and medium-sized retail outlets, medium-sized manufacturers and low-income consumers. As of June 2010, Tribanco had BRL 1.81 billion (USD 1.07 billion) in total assets. IFC has 182 member countries that “collectively determine its policies and approve investments”. In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion [1,2].

By John Howard-Smith, Research Associate

About Banco Triângulo SA (Tribanco): Founded in 1990, Banco Triângulo SA (Tribanco) is a Brazilian bank owned by supply-chain conglomerate Sistema Integrado Martins (SIM) that primarily serves micro-, small and medium-sized retail outlets, medium-sized manufacturers and low-income consumers. As of June 2010, Tribanco had BRL 1.81 billion (USD 1.07 billion) in total assets.

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance intended to alleviate poverty and promote open and competitive markets in developing countries. IFC has 182 member countries that “collectively determine its policies and approve investments”. During its fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.

[1] IFC Press Release: “IFC Investment in Tribanco Supports Supply Chain Financing for Brazil’s Micro, Small, and Medium Enterprises”, http://www.ifc.org/ifcext/lac.nsf/Content/SelectedPR?OpenDocument&UNID=B5CEE4A4AC6A49F9852577F8005EA276

[2] Tribanco, http://www.tribanco.com.br/

MicroCapital.org story, October 12, 2009: “MICROCAPITAL.ORG STORY: IFC Extends USD 15 Million Loan to Brazil’s Tribanco”, https://www.microcapital.org/microcapitalorg-story-ifc-extends-usd-15-million-loan-to-brazils-tribanco/

MicroCapital’s Microfinance Universe profile: Banco Triângulo S.A. (Tribanco), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Tri%C3%A2ngulo+S.A.+(Tribanco)

MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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