DCM Solis FIDC (IFC-45323)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
UNINFORMED
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SOLIS INVESTIMENTOS LTDA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 16, 2024

Disclosed by Bank Nov 18, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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.                                                   

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, The Project consists of an up to BRL 250 million (up to US$50 million) investment in senior quotas of Tradepay, to be structured in two commitments. The first commitment amount is up to BRL 118 million (equivalent to up to US$22 million).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, The Fund is managed by Solis, one of the leading FIDC fund managers in Brazil. Solis’ controlling shareholders and top management team consists of Mr. Ricardo Binelli (54%) and Mr. Delano Macedo (24.7%), two professionals, who have worked with FIDCs in Brazil since 2005. Solis established its first FIDC in 2016 and as of October 31, 2021, has been managing 55 funds, totaling BRL 5.7 billion in assets under management. Solis’ partners have in turn invested in junior quotas of Tradepay.   


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Solis Investimentos Ltda.
Delano Macêdo de Vasconcellos
Credit Director
+55 11 3031-7370
delano.macedo@solisinvestimentos.com.br
Rua Ferreira de Araújo, 202, Conj.92, Pinheiros, São Paulo. SP, 05428-000.
www.solisinvestimentos.com.br

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries.

 

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly,  you can submit a complaint at the link above to IFC’s Access to Information Policy Advisor, who reports directly to IFC’s Executive Vice President. 



ACCOUNTABILITY MECHANISM OF IFC/MIGA

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/

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How it works