34608 - DARP SSF Plural

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Summary of Investment Information

Project Number

34608

Company Name

Brasil Plural Special Situations Fundo de Investimento Multimercado Credito Privado

Date SPI Disclosed

Apr 4, 2014

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

May 5, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : May 28, 2014
Signed : May 29, 2015
Invested : Sep 16, 2015

Sector

Distressed Assets SPV

Project Description

The Project (“DARP SSF Plural”) supports Brasil Plural S.A. Banco Múltiplo’s plans to launch an innovative investment vehicle to provide special financing to distressed Brazilian companies that have sound fundamentals but are under or near Brazilian court-driven restructuring process (“the Fund”). Brasil Plural Gestão de Recursos Ltda. will be the manager of the Fund (the “Manager”), called Brasil Plural Special Situations Fund.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	22.36

Development Impact

- Jobs Saved/Preserved: A major consequence of resolving special situations is saving and eventually creating jobs, which carries significant and positive benefits. A significant number of jobs are forecast to be preserved as a result of the financing provided by the Fund.
- Access to Finance: IFC will facilitate the restructuring and refinancing of financially stressed companies, keeping assets in productive use and jobs in place, as well as providing much needed liquidity and risk capital for the local marketplace.
- E&S Standards: IFC''s participation in this project would support a leading Brazilian asset manager with the capacity to implement and promote good environmental and social standards for the corporate sector in Brazil.

- Knowledge and Innovation: the Project will support the development of expertise for handling corporate special situations in Brazil, which will be an important area of the capital markets as Brazil attempts to deal with the effects of the global economic situation, including rising non-performing loans and stricter capital requirements in the banking sector.
- IFC Stamp of Approval: IFC''s involvement in the Project will provide an important signaling effect which will facilitate mobilize further international and domestic capital.
- Liquidity: Provide liquidity for distressed assets investments when liquidity is scarce for these types of investments. Accordingly, IFC would be enabling further private sector investment in this sector.

E&S Category Rationale / Risks and Mitigation

The project was categorized as Category FI-2 according to IFC’s Sustainability Framework. It involves an up to BRL50 million equity investment in Brasil Plural Special Situations Fund, which will take advantage of opportunities to provide special financing to distressed companies arising out of recent improvements in the Brazilian Company Bankruptcy framework. Potential pipeline activities include medium E&S risk sectors such as suppliers of oil and gas, pulp and paper, agribusiness, metal and textile sectors, mostly medium sized companies’ such as services and spare parts manufacturers part of the supply chain of large groups.

The key risks and impacts derive from the Bank and/or the Manager’s capacity to implement a robust management system able to identify and manage the potential environmental and social risks associated to sub-projects in potentially higher E&S risks. Currently the Bank and/or the Manager do not count with an ESMS and the required E&S capacity to implement. Additionally, E&S risks and impacts of the Project derive from the Bank and/or the Manager’s capacity to maintain good practices with regards to labor and working conditions.

Key Mitigation Measures

Task Description
Anticipated Completion Date
Nominate E&S Officers/Department
On or prior to Commitment
Establish an ESMS including guidelines for its implementation
On or prior to Commitment
Implement Staff Training
On or prior to Commitment

Contacts

For Inquiries About the Project, Contact

Renato Vilela Corvello
Special Situations Analyst
Brasil Plural Banco Múltiplo S.A.
373, Surubim Street, 1st floor
São Paulo, SP, Brazil – 04571-050
Tel +55 11 3206-8179
mailto:Renato.corvello@brasilplural.com

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Description	Anticipated Completion Date
Nominate E&S Officers/Department	On or prior to Commitment
Establish an ESMS including guidelines for its implementation	On or prior to Commitment
Implement Staff Training	On or prior to Commitment

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