MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Provides $29.1m in Guarantees Toward Brazilian Securitized Fund for SMEs

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has committed to issue a BRL 50 million (USD 29.1 million) guarantee for investors in a fund that securitizes loans originated by Banco Industrial Comercial S.A. The transaction is in a Brazilian securitized fund, or FIDC (Fundos do Investimento em Direitos Creditorios), that targets loans to small and midsize enterprises.

BicBanco is a Brazilian bank founded in 1938 that reported total assets of BRL 14.6 billion (USD 8.49 billion) as of June 2010. An unnamed representative of BicBanco stated that the long-term guarantee would help it attract a “new type of institutional investor” that will “support the loan portfolio expansion for our Brazilian small- and medium-sized enterprises.”

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 to alleviate poverty and promote open and competitive markets in developing countries. The 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.

By Matthew Fox, Research Assistant

Sources and Additional Resources

International Finance Corporation (IFC): Press Release 16 September 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/273D92AE6C199CEA852577A000597D80?OpenDocument

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

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