Frida (IFC-41746)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
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
Nov 23, 2018
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 SANTANDER BRASIL SA
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)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 26, 2018

Disclosed by Bank Oct 24, 2018


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Project Description

According to IFC website, the project consists of a senior debt facility of up to US$300 million to Banco Santander (Brasil) S.A. to support the origination of sub-loans to women-owned small and medium enterprises in Brazil. The facility consists of: (i) a 4-year bullet A-loan of up to US$150 million on IFC’s own account, and (ii) a 2-year bullet B-loan of up to US$150 million.

Further, the Project will contribute to close the significant financing gap for WSMEs in Brazil, where 30% of WMSMEs find themselves to be financially constrained. The Project will leverage on Santander's position and distribution network to expand access to finance for WSMEs. It will also demonstrate to other lenders the business opportunity presented by under-served WSMEs, leading to replication that will improve competitiveness through an increased offering of financial services and products for WSMEs.

People Affected By This Project

(i) Project Impact - Stakeholders: IFC anticipates that the Project will contribute to close the significant financing gap for WSMEs in Brazil, where 30% of WMSMEs find themselves to be financially constrained. The Project will leverage on Santander's position and distribution network to expand access to finance for WSMEs.

(ii) Market Impact - Competitiveness: The Project should demonstrate to other lenders the business opportunity presented by under-served WSMEs, leading to replication that will improve competitiveness through an increased offering of financial services and products for WSMEs.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Santander is directly and indirectly controlled by Santander Spain (89.6%), through its subsidiaries Grupo Empresarial Santander S.L. and Sterrebeeck B.V. The Bank is publicly traded in Brazil at the Bovespa (B3) stock exchange and in the United States in the New York stock exchange (“NYSE”) stock exchange, with a total free float of 10.06%.

Contact Information

Project Contact: Eugenio Zaccaro Pagotto
Funding Manager, Banco Santander (Brasil) S.A. 
Telephone No.: +55 (11) 3012-6753
Email Address: eugenio.pagotto@santander.com.br
Office Address: Av. Juscelino Kubitscheck, 2235, Sao Paulo
Website: www.santander.com.br

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/