IIC and Itaú Unibanco close a record US$280 million A/B loan
Washington, D.C. - On March 25, 2011, the Inter-American Investment Corporation (IIC) and Itaú Unibanco S.A. closed an operation comprised of a US$40 million A loan financed by the IIC and a US$240 million B loan financed by participating banks. The A loan matures in five years and the B loan is made up of two tranches, a US$207 million tranche with a tenor of three years and a US$33 million tranche with a tenor of five 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 Itaú Unibanco. This is the largest A/B loan ever raised by the IIC.
HSBC Bank Bermuda Limited, JPMorgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd., Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation participated in the B loan with ticket amounts of up to US$50 million each.
According to Rita Bettiol, IIC Syndications Officer in charge of the distribution of the B loan, "Financial institutions fulfill an important role in Latin America enabling SMEs to grow and become stronger by facilitating their access to financial products. The IIC is interested in increasing its presence in the syndication market by using the A/B loan structure, considering it an effective tool for attracting international financing to benefit small and medium-sized enterprises."
"We are very pleased with the IIC’s continuous support to Itaú Unibanco and welcome the participation of banks with which we have a longstanding relationship in such an important transaction. This new financing will enable Itaú Unibanco to further expand its SME business in Brazil by improving overall access to long-term financing to the bank’s clients," said Daniel Gleizer, Executive Vice President - Institutional Treasury.
About Itaú Unibanco
Itaú Unibanco is the result of a merger between two large financial institutions. It is the largest private bank in Latin America and one of the ten largest banks in the world, with nearly 5,000 branches, more than 30,000 ATMs, and over 108,000 employees throughout the Americas, Asia, and Europe. Itaú Unibanco is the only financial institution in Latin America to be included in the main corporate sustainability index in the world, the Dow Jones Sustainability Index (DJSI), since its creation. Itaú Unibanco has been included in the index for eleven consecutive years. In the 2010/2011 edition, the bank received the highest score in Human Capital Development and scored above average in all items evaluated for financial institutions.
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
Contact: Rita Bettiol
Telephone: (202) 623-1263