IIC Financing For Banco Rabobank International Brasil S.A. Will Provide Small And Medium Brazilian Farmers With Access To Fixed Assets And Working Capital
10/03/2006Washington, D.C. On October 3, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$50 million for a term of up to five years to Banco Rabobank International Brasil S.A., one of the main banks in Brazil that provide financing for the agricultural sector, especially in the domestic SME market.
The loan comprises an A loan of up to US$7.5 million and a B loan of up to US$42.5 million. Since 2003, the IIC has approved several loans to Banco Rabobank International Brasil S.A., enabling the latter to provide financing to 98,929 Brazilian SMEs with an average of US$2,022 per transaction. The operation approved today will benefit between 70 and 100 farmers who will receive subloans with terms of at least two and one-half years.
The operation approved by the IIC will enable Banco Rabobank International Brasil S.A. to obtain the funding it needs to continue these operations and help more farmers in this key sector of the Brazilian economy. With this type of financing the IIC can reach more small and medium farmers in the region. With the IIC loan, Rabobank Brasil and/or the cooperatives with which it works will be able to provide smaller farmers with term financing that is more in line with their cash flow.
According to Erik Peek, General Manager for Rabobank International Brasil SA., "The transaction has enabled Rabobank to better serve its farmer clients by providing longer-term loans and increased limits."
As of December 31, 2005, the IIC had approved US$289.7 million and disbursed US$190.46 million in Brazil. In 2005 the IIC approved four transactions in the agency line, guarantee, and financial services sectors totaling US$157.4 million.
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 stimulating 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: Víctor Hugo Moscoso (in Washington D.C.)
Telephone: (202) 623-3918