IIC, Brazil’s Banco Pine close US$106 million syndicated A/B loan


Washington DC – On January 21, 2011, the Inter-American Investment Corporation (IIC) and Banco Pine closed a US$106 million syndicated A/B loan to increase lending to small and medium-sized enterprises (SMEs) in Brazil. The operation includes a US$15 million A loan from the IIC and a US$91 million syndicated B loan that was placed among eight participating banks. The B loan has a term of two years. Initially launched for US$60 million, the B loan was increased to US$91 million due to its strong market reception.

The IIC, Banco Santander S.A., WestLB AG, and Standard Bank PLC placed the operation in their capacity as joint mandated lead arrangers and joint bookrunners. Banco do Brasil AG, Banco Bradesco Europa S.A., Banco Internacional de Costa Rica S.A., Banco Security, and Israel Discount Bank of New York also participated in the operation. The successful placement of the B loan was the result of a well-executed syndication strategy by the lead arrangers as well as the international market’s confidence in the A/B structure.

This operation is of great importance to Banco Pine, as it marks its debut in the syndicated loan market, which enables Banco Pine to obtain medium- and long-term financing to increase the amount of resources channeled to SMEs in Brazil and diversify its sources of funding.

According to IIC Syndications Officer Rita Bettiol, who is in charge of the Banco Pine syndication, "In Latin America, financial institutions fulfill an important role in the growth and strengthening of SMEs by facilitating their access to financial products. The IIC is interested in increasing its presence in the syndications market by using the A/B loan structure, which it views as an effective tool for attracting international financing destined to small and medium-sized enterprises."

"This transaction is very positive for Banco Pine, since it strengthens our relationship with the IIC and marks our presence in the syndicated loan market. It also reflects our strategy of diversifying our funding base at adequate conditions both in terms of pricing and tenor. The strong demand demonstrates the strength of Banco Pine’s name in the market and the recognition of its strategy of providing complete service to our clients by deeply understanding each company and its business," said Norberto Zaiet Junior, Banco Pine’s CFO and Investor Relations Officer.

About Banco Pine

Banco Pine is a medium-sized Brazilian commercial bank that focuses on providing agile, tailored services to meet the needs of medium-sized companies. It was founded by the Pinheiro family in 1939 and adopted its current name in 1997. It specializes primarily in corporate lending, acting through secured structured operations. It also provides financial and strategic consulting services, treasury and investment products, and BNDES development credit lines. As of September 2010, Banco Pine had US$513 million in equity and US$5.41 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 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 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: Rita Bettiol

Telephone: (202) 623-1263

Email: ritabe@iadb.org