36812 - Daycoval Gender

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

36812

Company Name

Banco Daycoval S/A.

Date SPI Disclosed

Sep 20, 2016

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Oct 18, 2016

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Apr 24, 2022

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Oct 31, 2016
Signed : Feb 23, 2017
Invested : Mar 9, 2017

Sector

Commercial Banking - SME Finance

Project Description

This project consists of an A loan of up to US$100 million and additional mobilization of up to US$150 million, including a MCPP Loan and a B Loan, to Banco Daycoval S.A. (“Daycoval” or the “Bank”). Daycoval is a mid-size bank in Brazil and an existing IFC client. The proceeds will be used to finance small and medium enterprises (“SMEs”) and will allow IFC to leverage its own funds, enhancing SME’s sustainability through financial inclusion. A minimum of 25% of the total financing package will be channeled to women-owned SMEs, reaching the underserved women-owned business in Brazil (the “Project”).

Associated Advisory Engagement

There’s no Advisory Services engaged in the project.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

- Support to SMEs and women-owned SMEs. The Project will increase access to finance to SMEs, at the same time that it fosters a competitive environment in the Brazilian banking sector. The loan facility will have a minimum target for on-lending to women-owned SMEs, enabling the Bank to increase the reach to this underserved market. The Project targets financial inclusion, which gives people the opportunity to escape poverty and improve their lives.
- Environmental and Social ("E&S") Expertise. IFC will continue to support the Bank in enhancing its E&S management system ("ESMS").

- Long-term funding. IFC will provide and mobilize long-term funding to be channeled to SMEs throughout Brazil and with a focus on women-owned SMEs.
- Mobilization. IFC will also provide the Bank with a B loan and a MCPP loan to increase the potential development impact of the Project.
- Long-Term Partnership. IFC has an excellent relationship with Daycoval. The Project will continue to build up on this relationship with a strong mid-size bank in Brazil.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed investment involves the support to Daycoval’s SME lending in Brazil, including women-owned SMEs, and has been classified as Category FI-2 according to the IFC''s Sustainability Framework. Overall portfolio risks includes a limited number of business activities that have potential limited adverse E&S risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. As part of the Project, the Bank will be required to enhance its E&S screening tools, develop and implement a staff training program, continue its commitment to applying the labor standards established by the IFC Performance Standards as well as maintain good life and fire safety practices.

The key risks and impacts of the project derive from the Bank''s capacity to maintain its management system to identify and manage the potential environmental and social risks associated with its sub-projects. Risks associated with Daycoval''s SME lending are of medium to low nature, typically related to occupational, health and safety. The pipeline of SMEs is mostly composed of sub-clients inserted in the supply chain of automotive, agriculture, steel, cement and chemical industries. Although procedures towards a more robust ESMS have been implemented, IFC recommended some improvements in how E&S findings can be better incorporated into the bank''s decision-making.

Contacts

For Inquiries About the Project, Contact

Ricardo Gelbaum
Institutional and IR Officer
Banco Daycoval S.A.
Avenida Paulista, 1793, 01311-200, São Paulo, Brazil
Tel: +55 (11) 3138-1024
Fax: +55 (11) 3138-0664
Email: mailto:Ricardo.gelbaum@bancodaycoval.com.br

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
ESMS enhancement and Capacity building Plan	08/26/2016
Review ESMS tools	02/22/2017
Staff training and continuous capacity building	02/22/2017

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer