IIC and Brazil’s BICBANCO close a US$118 million syndicated operation

05/08/2011

Washington, D.C. – On April 29, 2011, the Inter-American Investment Corporation (IIC) and Banco Industrial e Comercial S.A. (BICBANCO) closed an operation comprised of a US$13 million A loan to be financed by the IIC and a US$105 million B loan that was placed among six participating banks. The A loan matures in five years and the B loan matures in three years.

The proceeds of the IIC loan and those obtained through the B loan will be used to provide financing to small and medium-sized enterprises that are clients of BICBANCO. Initially launched for US$73 million, the B loan was increased to US$105 million due to its strong market reception.

WestLB AG, Banco do Brasil, S.A., Standard Chartered Bank, and Banco Bradesco Europa S.A. acted as joint bookrunners. UniCredit Bank AG and Banco Internacional de Costa Rica, S.A. also participated in the B Loan.

According to Rita Bettiol, IIC Syndications Officer in charge of the BICBANCO syndication, "Financial institutions fulfill an important role in Latin America enabling SMEs to grow and become stronger by facilitating their access to financial products. With this A/B loan the IIC has succeeded in attracting international financing, which will be channeled to small and medium-sized enterprises in Brazil."

"The SME segment is a significant contributor to Brazil’s economic growth and its consistent level of employment. Our role in supporting these companies’ projects is enhanced by adequate credit lines, like this IIC syndicated deal", said Milto Bardini, Executive Vice President of BICBANCO.

About BICBANCO

BICBANCO is specialized in offering corporate credit to the middle market segment—companies with yearly revenues between R$50 million and R$500 million. It offers a wide range of products and services aimed at its diversified client base located throughout Brazil. With over 70 years of experience in this activity, it is one of Brazil's most traditional banks, supporting the sustainability and longevity of its businesses through initiatives related to good corporate governance practices, corporate ethics, and risk control.

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Press Release also available in Portuguese

Contact: Rita Bettiol

Telephone: (202) 623-1263

Email: ritabe@iadb.org