IIC Approves Loan To Banco Rabobank International Brasil S.A. In Brazil
12/03/2009Washington, D.C. - On December 4, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$200 million (comprising an A loan of up to US$30 million and a B loan of up to US$170 million) to Brazil’s Banco Rabobank International Brasil S.A. Banco Rabobank focuses on the agricultural and food sectors, where it has a significant share of the small and medium-size enterprise market.
This is the IIC’s sixth operation with Banco Rabobank. The loan proceeds will be used to provide direct financing to SMEs and to invest in credit receivable investment funds (FIDCs). Eligible enterprises shall not exceed US$20 million in assets or yearly revenue.
Investing in FIDCs seeks to increase working capital financing for large companies that will in turn be able to grant credit to their end buyers, many of which are SMEs. In addition, the loan will contribute to the direct growth of Banco Rabobank’s SME portfolio and support the development of innovative products on the capital market. Because the B Loan to A Loan ratio is approximately 5.6 times, the potential for reaching a large number of eligible enterprises and projects, either directly or indirectly, is expected to be high.
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides 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 2008, the IIC reached US$1.5 billion in assets and approved sixty-four operations channeling US$300.5 million to SMEs in the region. 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. For more information on the IIC’s activities, please visit www.iic.int
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