PROJECT

Projects

Summary of Proposed Investment

Project Number

11291

Company Name

BANCO ITAU BBA SA

Date SPI Disclosed

Jan 3, 2002

Country

Brazil

Industry

Financial Markets

Projected Board Date

Feb 5, 2002

Status

Completed

Sector

Commercial Banking - General

Department

Global Industry, Financial Markets

Environmental Category

C - No Impact

Previous Events

Approved : Apr 9, 2002
Signed : Jun 27, 2002

Project Description

As of March 2001, BBA-CA ranked 11th in size among all private banks operating in Brazil, and 5th among privately owned domestic banks, with total assets of approximately US$6.3 billion and net worth of approximately US$486 million. Unlike the “big three” private sector banks in Brazil – Bradesco, Itau, and Unibanco – BBA-CA does not view itself as a universal or “multiple” financial institution, as its operations are principally focused on wholesale banking and because it does not have a large retail client base with a significant retail banking franchise. The bank provides its corporate customers with credit facilities, trade finance, foreign exchange, derivative products, underwriting facilities, and advisory services on mergers, acquisitions and privatizations. In addition to its core wholesale banking business, BBA-CA also has an active proprietary trading book and offers its clients asset management services, private banking services and consumer finance products.

In light of deteriorating world-wide economic conditions and possible contagion from the Argentine crisis, IFC considers it important to support the Brazilian banking sector, particularly the wholesale banking sector. Therefore, IFC''s further investment in BBA will give an important signal to the market of its support of this sector, particularly given the current crisis in Argentina .

Sponsor / Cost / Location

Development Impact