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The proposed project shall support the small and medium-enterprise (“SME”) lending activities of REDAsset Gestao de Recursos Ltda. in Brazil. This will be done through the acquisition of senior quotas of RED Performance FIDC NP, a debt fund managed by REDAsset.
The most significant, expected Project-level outcome is the increased capital market funding for the underserved SME segment through the growth of a FIDC instrument that finances SMEs, as follows:
Stakeholders - Increased capital market funding opportunities for SMEs as Originators: IFC anticipates that the Project will increase access to finance for Brazilian SMEs, helping to address the SME finance gap through a capital markets solution.
Stakeholders - Increased access to finance for MSMEs as Obligors: By acquiring receivables from the originators, the Fund contributes to the financial health of the supply-chain. With more funding available, originators are better positioned to sustain its growth and the growth of its clients, the obligors.
Market Creation - Competitiveness: Beyond the Project, IFC anticipates that this investment has the potential to promote greater market competitiveness through the following aspects: (i) the structural change through the increase in alternative financing opportunities for MSMEs, and (ii) the diversification of investment opportunities in the capital markets in Brazil.
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/