The proposed investment consists of an up to USD 40 million (up to BRL 200 million) A loan to Ser Educacional S.A. (“Ser” or the “Company”) and its subsidiaries, one of the largest private tertiary education providers in Brazil by enrolment with c. 218k students. Headquartered in Recife, Pernambuco, Ser is the leader in the North and Northeast regions and has been expanding to all Brazilian regions through a mix of organic and inorganic growth strategy. The Company is focused on quality affordable education to students from classes B-/ C/ D and E who are enrolled in one of Ser’s 61 campuses and 447 distance learning (“DL”) centers scattered across all 26 Brazilian states. The proceeds of IFC investment will be used to support Ser in its direct and indirect response to the effects of COVID-19. The proposed investment will support the Company’s digital platforms upgrades and product portfolio development to help navigate this crisis, strengthen the education model and allow for the incorporation of new students, acquired via mergers and acquisitions, into its academic platform. The COVID-19 pandemic and lockdown situation have exposed the vulnerability of subscale universities lacking a strong, digital footprint and professional management who decided to sell their operations to more prepared players such as Ser. The Project supports these acquisitions as a mean to reach new students and ensure continuity and upgrade of their learning experience at an affordable tuition (the “Project”).This project is linked to Mauricio Equity - Project 33578 - https://disclosures.ifc.org/project-detail/SII/33578/mauricio-equity
The Project helps ensure continued provision of quality education to low income students in frontier regions. By supporting consolidation, the Project contributes to the professionalization and digital transformation of the sector, increasing resilience to future crises. IFC will track students reached and capacity in affected markets.
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