SocGen EF Brazil (IFC-39086)

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
U
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
May 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
SOCIETE GENERALE EQUIPMENT FINANCE
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)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 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 Aug 12, 2017

Disclosed by Bank Apr 24, 2017


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Project Description
The project involves providing an up to US$ 50 million BRL equivalent A loan to SG Equipment Finance S.A. Arrendamento Mercantil (“SGEF Brazil” or the “Company”). The funds will be used to provide financing, mainly through leasing, to climate smart transactions (the “Project”). The Project counts on Credit Enhanced Loan Transaction (“CELT”) guarantee issued by Société Générale Group in France (“SGG”) which covers all commercial credit risk with the exclusion of certain country risk events. Supporting climate-change mitigation investments through financial intermediaries is a key pillar of IFC’s strategy.
People Affected By This Project
- Positive Climate Change Mitigation. Through climate smart financing, SGEF Brazil's activities will have a direct impact in lowering greenhouse emissions and encouraging efficient management and re-use of scarce resources. - Contribute to the confidence in the leasing sector in Brazil. By providing its first loan to a leasing company in Brazil and the first within SGEF entities, in the midst of an economic contraction, the Project will help address a potential confidence crises and increase market confidence in SGEF Brazil and in the leasing sector in Brazil.
Investment Description
  • International Finance Corporation (IFC)
The Project sponsor is SGEF Brazil, a leasing company operating within the Société Générale Equipment Finance (“SGEF”) group and mainly focused on equipment and vendor finance, both local and international.The Company is a wholly owned subsidiary of Banco Société Générale Brasil, which, in turn, is a 100% subsidiary of SGG. SGG has no parent company and its ownership structure as of December 2016 is as follows: free float (88.39%) of which BlackRock Institutional Trust Company (5.58%); Group employee share ownership plan (6.61%); Shareholders with more than 1.5% of the capital or voting rights (3.97%); Share buybacks (1.02%).
Contact Information
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/ CONTACTS SG Equipment Finance S.A. Arrendamento Mercantil Ademir de Araujo +55 11 2666 2281 ademir.araujo@sgef.com.br Alameda Rio Negro, 500 - 20th floor - Tower B - Barueri - SP - Brazil