IIC Approves An A Loan Of US$15 Million And A B Loan Of US$85 Million To Banco Rabobank International Brasil S.A.
05/25/2004Washington, D.C.- On May 25, 2004, the Inter-American Investment Corporation (IIC) approved an A Loan of up to US$15 million and a B Loan of up to US$85 million to Banco Rabobank International Brasil S.A. to help a larger number of small and medium-size enterprises to have access to lines of credit for the purchase of goods and services from large corporations. This is the second such loan from the IIC to Banco Rabobank International Brasil S.A.
Banco Rabobank International Brasil S.A. is part of the Rabobank Group. The loan proceeds will be used to finance acquisition by the bank of 100% of the senior quotas of receivables investment funds (Fundos de Investimento em Direitos Creditórios, or FIDC) set up to acquire discounted receivables issued by certain companies that finance small and medium-size enterprises.
The IIC’s ability to lend for a longer term has rendered the operation interesting to the companies selling the receivables. The loan will allow the IIC to provide financing to more than 200,000 SMEs that operate in the sector of plastic pipes for transportation of fluids for irrigation, and in the food sector. The longer term funding for the FIDC guarantees a constant source of funding for larger companies to be able to sell their receivables and for SMEs to have a constant source of working capital.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Victor Hugo Moscoso
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