The proposed project consists of an investment in senior quotas of FIDC Tradepay Varejo I (Tradepay or the Fund), a short-term, non-recourse, virtual credit card receivables fund managed by Solis Investimentos (Solis or the Fund Manager) in Brazil (the Project). Tradepay exclusively finances Trademaster (TM), a Fintech/Tradetech payment/settlement platform for the Brazilian retail sector interacting with large consumer product companies.
IFC anticipates that the Project will contribute to increasing access to finance for MSME buyers engaged in short-term supply chain finance and which are obligors to the Fund. Brazil's low credit penetration is attributable to structural issues in the banking sector; concentration, high degree of state intervention, high interest rates, etc., which all contribute to a lack of innovation and incentives to go down the market to reach MSMEs. The Project is expected to contribute to the improvement of access to finance for MSME retailers, as it supports a financing structure that improves financing terms at which MSME retailers acquire merchandise from large corporates in Brazil.
IFC expects that the Project will further contribute to a greater market competitiveness by increasing the offer from alternative lenders in the MSME financing segment, while deepening the local debt markets via the diversification of the FIDC market. The Project will ultimately contribute to an improved availability of financing options for MSMEs.
Solis Investimentos Ltda.
Delano Macêdo de Vasconcellos
+55 11 3031-7370
Rua Ferreira de Araújo, 202, Conj.92, Pinheiros, São Paulo. SP, 05428-000.