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In Brazil, Proparco and DEG grant a $40 million loan to Banco Industrial do Brasil to support SMEs
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The transaction consists of a USD 40 m senior loan Facility arranged by DEG, with USD 20 m provided by Proparco, to the Brazilian bank Banco Industrial do Brasil (BIB). The funds will support BIB’s lending activities in its SME business focus in the country.
Banco Industrial do Brasil (BIB) is a small Brazilian bank established in 1994, which focuses on SME financing (84% of its portfolio). BIB’s strategy to work with SMEs aims at bridging the gap of the traditional financial offer available in Brazil. The bank supports companies with Net Revenues from ~USD 20m and currently has more than 600 clients.
The bank is one of the DEG’s longtime clients. Proparco was invited by DEG to contribute to the Facility, to support the bank’s SME client base, in a difficult economic context due to the covid-19 crisis.
This transaction with BIB is fully aligned with Proparco’s financial sector strategy in Latin America, for promoting the local development of SMEs while operating with high-quality and experienced financial intermediaries.
This project will then contribute to SGD #8 “Decent work and Economic Growth”.