IIC, Banco Daycoval S.A. close US$112.5 million syndicated A/B loan


The Inter-American Investment Corporation (IIC) has successfully closed a US$112.5 million syndicated A/B loan transaction with Banco Daycoval to increase lending to small and medium sized enterprises (SMEs) in Brazil. The transaction involved a US$15 million A loan from the IIC and a syndicated B loan, which closed oversubscribed at US$97.5 million with nine participating banks. The B loan matures in three years with a two-year grace period.

The IIC together with Banco Santander S.A. and Standard Chartered Bank acted as Joint Mandated Lead Arrangers and Joint Bookrunners responsible for the syndication process.

"This operation has been extremely important to Banco Daycoval, allowing the bank not only to diversify its sources of funding but also to obtain medium-and long-term funding to increase lending to SMEs in Brazil. With the proceeds from the A/B loan, Banco Daycoval will increase lending to SMEs with annual sales not exceeding US$20 million", said Morris Dayan, Executive Director of Banco Daycoval.

Other participants in the syndication were: Banco do Brasil AG, Banco Latinoamericano de Comercio Exterior S.A. (Bladex), and ING Bank N.V. as Mandated Lead Arrangers; Citibank NA New York as Lead Arranger; Israel Discount Bank of New York and Banco Security as Arrangers; and Republic Bank Limited as Participant. The successful mobilization of nine B loan participants in this transaction was the result of a well-executed syndication strategy and the commitment of the IIC’s partners in the B loan Program.

"Financial institutions play an important role in the expansion of SMEs, facilitating access to financial products. The IIC is interested in increasing its presence in the syndication market using the A/B loan structure, considering it an effective tool for attracting international financing to the region from financial intermediaries, with terms that are favorable for investing in the SME segment", said Javier Barsantini, IIC Investment Officer in charge of Banco Daycoval’s syndication transaction.

"We are very pleased to have worked once again with the IIC in the coordination of an A/B loan operation, enhancing our long-term relationship. The confidence deposited on us by the IIC together with the solid performance shown by Banco Daycoval and the hard work from all the Joint Lead Arrangers have been key to the successful syndication of this loan, particularly in these times of significant financial difficulties around the world. Moreover, it is worth mentioning that the syndication was strongly oversubscribed", said Sasson Dayan, CEO and Director of Banco Daycoval.

About Banco Daycoval

Banco Daycoval is a Brazilian commercial midsize bank focused on secured lending to SMEs. First established as a brokerage house in 1968, the bank assumed its current name in 1989 when it was authorized by the Central Bank to operate as a multiple service bank. While Banco Daycoval has diversified toward the retail sector, SMEs remain its core SMEs business. Banco Daycoval has been listed on the São Paulo Stock Exchange (BOVESPA) since June 2007. As of September 2010, Banco Daycoval had US$1.0 billion in equity and US$5.5 billion in assets.

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing 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 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Press Release also available in Portuguese

Contact: Juan Eduardo Zuluaga

Telephone: (202) 623-3812

Email: juanz@iadb.org