Partial Credit Guarantee Program to Banco Rabobank International Brasil S.A.

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Project Number: 
BR3550A-01
Expected Consideration Date by the Board: 
11/29/2005
Date Posted: 
10/27/2005
Company: 
Banco Rabobank International Brasil S.A. (Rabobank Brasil)
Financing Requested: 
Sector: 
Financial Services
Location: 
São Paulo
Country: 
Scope Objective: 

A partial credit guarantee to be provided by the IIC to cover principal payments of rural loans to Brazilian farmers financed by Rabobank Brasil. The IIC will rely fully and solely in Rabobank Brasil’s identification process and credit and financial analysis of the transactions to receive the partial credit guarantee from the IIC. The partial credit guarantee Program provides a cost-effective way for the IIC to support an innovative form of financing in the agricultural sector that should provide a demonstration effect, by relying on a specialized financial institution in the agribusiness sector willing to share the risk of short-term lending initially to medium and large-sized farmers in Brazil with the ultimate goal of offering the same financing to the smaller farmers in Brazil.

Environmental Review: 

All projects must comply with IIC environmental and labor review procedures. As part of Rabobank’s appraisal, the farmer will be subject to an environmental and labor review. Since Rabobank has two previous active operations with the IIC, Rabobank fully understands the IIC’s environmental and labor procedures since members of its staff have participated in the IIC’s Environmental Training Course for financial intermediaries. Rabobank already has an environmental management system in place. In addition, Rabobank is a signatory to the Equator Principles

According to the IIC's environmental and labor review procedure, the Partial Credit Guarantee Program will be rated as Category III since specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria.