DARP Itau (IFC-38993)

Countries
  • Brazil
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 30, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
DARP SPV Itau
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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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Project 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

- 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
  • International Finance Corporation (IFC)

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

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/