DFP Patria Infra (IFC-45779)

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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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
Oct 20, 2022
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
PATRIA INFRA CREDITO FIDC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 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)
$ 150.00 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.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 19, 2024

Disclosed by Bank Sep 13, 2022

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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 envisioned project would entail an investment of up to US$150 million equivalent in BRL or up to 20% of the total commitments, as limited partner in a proposed infrastructure debt fund (the “Fund”) to be  managed by Patria Investimentos, Ltda. (“Patria” or the “Manager”) and the mobilization of up to US$550 million from institutional investors.  The Fund is expected to be incorporated as a FIDC (Fundo de Investimento em Direitos Creditóorios) with several series of quotas to fit investors' restrictions, especially those regarding Environmental & Social (E&S) aspects (the “Fund”). The structuring of the project has not been concluded. Nothing in this document should be construed as an offer or distribution of any product or securities in Brazil, in particular of Fund quotas. Patria is expected to invest the lower of 2% of committed capital or BRL120 million to the Fund, through junior quotas subordinated at redemption to other investors. The proposed Fund shall have an unlimited term of duration, but the series of quotas to be held by IFC will have a 50-year term, with a redemption option at the 10th year. The Fund is expected to have a target size of BRL3.5 to 6.0 billion, earmarked to finance infrastructure projects in the Energy, TMT, Transport & Logistics, and Water & Sanitation sub-sectors (“Eligible Sub-sectors”) in Brazil (the “Project”). The Project shall count with gender and climate tags.                                                

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

The proposed project consists of an IFC investment of up to US$150 million equivalent in BRL or up to 20% of the total commitments in the Fund for IFC’s own account. The Fund is expected to invest in infrastructure projects in the Eligible Sub-sectors.   

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 proposed Manager is 100% owned by Patria Investments Limited (“Patria Investments” or the “Sponsor”), a leading private markets investment firm in Latin America in terms of capital raised, with over US$13 billion raised since 2011 including co-investments, currently based in the Cayman Islands. Since January 2021, its shares are listed on the Nasdaq Stock Exchange.

In December 2021, the Sponsor announced a combination with Moneda Asset Management, a leading diversified asset manager headquartered in Chile, with over US$10 billion in assets under management (AuM) across both credit & equities. The transaction positioned Patria Investments as the top alternative investment platform in Latin America.

Patria is one of the most prominent private equity players in the Infrastructure sector in Brazil, with more than 30 years of track record and currently US$5.1 billion in AuM in Infrastructure Private Equity. Patria’s expertise in credit dates back to 2009, with over US$7 billion in financing structured, and having raised in 2018 the most relevant fund of BRL1.2 billion. Patria has a successful experience setting up and managing a similar instrument with Patria Crédito Estruturado FIDC, whose primary objective was to provide senior secured lending to medium-sized private Brazilian companies, and where IFC is an investor (project #39271).             


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.

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IFC

 

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/

How it works

How it works