42053 - DCM XP Investimentos II

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Summary of Investment Information

Project Number

42053

Company Name

XP INVESTIMENTOS S.A.

Date SPI Disclosed

Jan 8, 2019

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Feb 11, 2019

Environmental Category

FI-3 - No Impact

Status

Hold

Last Updated Date

Aug 15, 2019

Department

Regional Industry - FIG LAC

Industry

Financial Markets

Previous Events

Approved : Apr 30, 2019

Sector

Broker/Dealer

Project Description

The proposed investment (the “Project”) consists of an A loan of up to US$5 million and a B loan of up to US$80 million to XP Investimentos S.A. (“XP” or the “Company”) to support the expansion of XP’s client base.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
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

Widening access to financial inclusion: The Project will be supporting the development and consolidation of a wide platform of distribution of assets, through which XP was able to connect investors looking for alternative ways of investing, and companies and small and medium size banks looking for diversified funding sources. Greater competitiveness: The Project has the potential to promote greater competitiveness in the credit market for small and medium-sized companies, stimulating innovation and competition. Market integration: The Project will contribute to greater deepening of financial markets by further increasing access to products and services for retail investors.

E&S Category Rationale / Risks and Mitigation

The Project consists of an A/B Loan to XP Investimentos S.A. to support its expansion in the country. XP provides services mostly to individuals with assets allocated generally on sovereign bonds and publicly traded stocks. Given the low E&S risk of the activities performed by the Company, the project has been categorized as FI-3, according to the IFC's Sustainability Framework. XP is an existing client and its labor practices are in line with IFC requirements. The client will notify IFC in case of any change in the scope of operations that affects the E&S risks of its activities.

Contacts

For Inquiries About the Project, Contact

XP Investimentos S.A.
Deborah Rodrigues
Communications Officer
+55 11 3292-6591
deborah.rodrigues@xpi.com.br
Avenida Brigadeiro Faria Lima, 3600, 10th floor, Sao Paulo-SP, 04538-132, Brazil
www.xpi.com.br

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