DARP Itau (IFC-38993)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 30, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
DARP SPV Itau
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 12, 2018

Disclosed by Bank Mar 7, 2017

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project consists of an IFC investment of up to US$200 million to acquire non-performing loans or distressed assets (Portfolios) sold by Itaú Unibanco S.A. ("Itaú") in Brazil. For this purpose, Itaú and IFC will be co-investors in a special purpose vehicle ("SPV"). Recovery do Brasil Consultoria S.A. (the "Company" or "Recovery"), market leader in asset resolution, will service the Portfolios acquired.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

- Economic Development. The Project will continue to support the development of the non-performing loans or distressed assets market in Brazil. So far, IFC's DARP investments through the existing platform have (i) allowed Brazilian banks to off-load in excess of BRL30 billion face value non-performing loans or distressed assets, and (ii) built infrastructure for distressed assets ("DA") resolution in Brazil.
- Access to Finance. The Project will continue to facilitate the normalization of obligations of households and SMEs, preventing a large number of them from losing their assets, regaining access to formal credit, and preserving jobs.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed project consists of an IFC investment of up to US$200 million, in the form of debt and equity, earmarked at financing the acquisition of Portfolios originated by Itaú.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

FOR INQUIRIES ABOUT THE PROJECT:

Itau Unibanco S.A.
Renato Avelar
55 11 2794 6877
renato.avelar@itau-unibanco.com.br
Praça Alfredo Egydio de Souza Aranha, 100, Torre Alfredo Egydio, 9th floor - 04344-902 São Paulo, SP

FOR INQUIRIES AND COMMENTS ABOUT IFC:

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works