Summary of Proposed Investment
Project Number
11699
Company Name
Itau Unibanco Holding S.A.
Date SPI Disclosed
Aug 12, 2002
Country
Brazil
Industry
Financial Markets
Projected Board Date
Sep 17, 2002
Status
Completed
Sector
Trade Finance
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Sep 20, 2002
Signed : Oct 10, 2002
Invested : Nov 1, 2002
Project Description
The bank offers an array of financial services including retail, commercial, corporate, and private banking. The facility will be used by the bank to extend international trade finance to Brazilian exporters and importers.
The project is in response to Brazil''s need for trade finance at a time of global risk aversion and severe market illiquidity in Brazil. In this environment, fast-moving multilateral initiatives like the proposed TFF have an important role to play not only in providing needed financing to the country, but in buttressing investor sentiment for Brazil.
The B Loan will allow international banks that currently have trade-related exposure to Itaú to keep their lines outstanding to the bank, rather than withdrawing them due to short-term Brazil exposure concerns. Such a B Loan initiative would complement efforts on the part of Brazilian banks and the government to persuade international lenders to leave in place lines currently outstanding to Brazilian financial institutions.
The project would also be complementary to policy initiatives, reportedly being mulled by other multilaterals such as the IMF, to address the current, severe pullback of bank lines to Brazil.
The project is in response to Brazil''s need for trade finance at a time of global risk aversion and severe market illiquidity in Brazil. In this environment, fast-moving multilateral initiatives like the proposed TFF have an important role to play not only in providing needed financing to the country, but in buttressing investor sentiment for Brazil.
The B Loan will allow international banks that currently have trade-related exposure to Itaú to keep their lines outstanding to the bank, rather than withdrawing them due to short-term Brazil exposure concerns. Such a B Loan initiative would complement efforts on the part of Brazilian banks and the government to persuade international lenders to leave in place lines currently outstanding to Brazilian financial institutions.
The project would also be complementary to policy initiatives, reportedly being mulled by other multilaterals such as the IMF, to address the current, severe pullback of bank lines to Brazil.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Paulo Henrique Genova, Senior Manager
Address: Rua Boa Vista 176, Sao Paulo, SP, Brazil
Phone: (5511) 237 3302
Fax: (5511) 237 3303
Address: Rua Boa Vista 176, Sao Paulo, SP, Brazil
Phone: (5511) 237 3302
Fax: (5511) 237 3303