Banco Industrial SME (IFC-39434)

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
Active
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 14, 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
Banco Industrial do Brasil S/A.
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 1, 2018

Disclosed by Bank Mar 14, 2017


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Project Description

The proposed project consists of a total package of US$ 50 million, composed of an A Loan from IFC’s own account of US$ 20 million and a B Loan component of US$ 30 million to Banco Industrial do Brasil S.A. (“BIB” or “the Bank”). The proceeds will be used to finance small and medium enterprises (“SMEs”) and will allow IFC to promote SME’ sustainability through financial inclusion. A minimum of 25% of the total financing package will be channeled to women-owned SMEs, reaching the underserved women-owned business (the “Project”). The proposed project is expected to support the Bank’s financing of SMEs, and women-owned SMEs, and is aligned with the objectives of IFC’s Banking on Women program and the Women Entrepreneurs Opportunity Facility (the “WEOF” or the “Facility”), a facility created by IFC and the Goldman Sachs 10,000 Women initiative which targets the dual goals of expanding access to capital to women entrepreneurs in developing economies and demonstrating the commercial viability of investing in women.

People Affected By This Project

Enhance access to SME finance: the Project will support SME financing in Brazil through BIB. In developing countries, lack of access to finance is a major constraint and hence SME finance has become a top priority for IFC in its dual-goal of poverty reduction and boosted prosperity. In the current Brazilian context, this Project gains a broader relevance as SMEs are the first to be impacted by shortage of credit supply in times of economic recession.

Banking on Women: The Project will increase the financial inclusion for women-owned SMEs, thus having a demonstration effect of the business opportunities presented by women entrepreneurs as an under-served market in Brazil.

Investment Description
  • International Finance Corporation (IFC)

BIB is fully owned by Mr. Carlos Alberto Mansur, who in 1994, acquired Banco Santista S.A., the then financial arm of Bunge & Born Group, and renamed it Banco Industrial do Brasil S.A. Mr. Mansur’s business experience track record is in the agribusiness sector. Prior to owning the Bank, Carlos Mansur owned and ran successfully one of the largest dairy products companies in Brazil called Vigor. He then sold Vigor to Bertin (former IFC client) in 2007 and used part of the sale’s proceeds to capitalize BIB.

The Project will entail an A/B loan package of US$50 million, of which: (i) an A loan of US$20 million for IFC’s own account; and (ii) a syndicated B loan of US$30 million. At least 25% of the above total package will be utilized to finance SMEs owned by women entrepreneurs, and the remainder for SMEs. As per IFC’s definition of women-owned business. IFC’s BoW program has adopted the following criteria: at least 25% percent of the facility amount must be used to finance SMEs which are (i) at least 51% owned by a woman or women; or (ii) at least 20% owned by a woman or women and (a) has at least one woman in senior executive roles (e.g. CEO, COO, President, Vice-President and etc) and (b) if it has a board of directors or other managing board or committee, at least 30% of the members of such board or committee are women.

Private Actors

Banco Industrial do Brasil S.A. is fully owned by Mr. Carlos Alberto Mansur, who in 1994, acquired Banco Santista S.A., the then financial arm of Bunge & Born Group, and renamed it Banco Industrial do Brasil S.A. Mr. Mansur’s business experience track record is in the agribusiness sector.  Prior to owning the Bank, Carlos Mansur owned and ran successfully one of the largest dairy products companies in Brazil called Vigor. He then sold Vigor to Bertin (former IFC client) in 2007 and used part of the sale’s proceeds to capitalize BIB.     

Contact Information

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