IIC Approves A US$12.5 Million Loan That Will Benefit Small And Medium-Size Enterprises In Brazil
08/06/2007Banco Daycoval S.A. will use the funding to provide revolving credit facilities and working capital loans averaging US$200,000
Washington, D.C. - On August 7, 2007, the Inter-American Investment Corporation (IIC) approved a loan of up to US$12.5 million to Banco Daycoval S.A. Daycoval is a medium-size bank headquartered in São Paulo. It offers a full line of financial services and credit to enterprises, targeting small and medium-size enterprises.
The loan proceeds will provide financing for small and medium-size enterprises in need of stable sources of financing. Such enterprises also have special requirements in terms of loan tenor and structure. By providing tailor-made financing, Daycoval will help these companies increase their production capacity and become more competitive. Daycoval’s subloans will average approximately US$200,000.
Such financing has proven to be an effective mechanism for channeling credit to small and medium-size enterprises through local banks. In Daycoval’s case, this operation will enable it to make more competitive loans while matching the terms of its own sources of funding. As Santiago Cat, IIC Investment Officer in charge of this operation, added: "The IIC is working to increase the flow of credit through the private banking sector to small businesses in Latin America and the Caribbean. The loan to Daycoval is in line with the Corporation’s strategy for doing so. Daycoval is doing excellent work in this area."
The Inter-American Investment Corporation 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. 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.
Contact: Carlos Roa/Santiago Cat (in Uruguay)
Telephone: (202) 623-3955