BIC is a privately-held bank, 95.93% controlled by the Bezerra de Menezes family (the Family). Through a holding company (Gemini Holding) and a brokerage company (BIC Corretora de Cambio e Valores) the Family retains the control. BIC Corretora de Cambio e Valores is 100% controlled by Primus Holding, 100% controlled by the Family. The Family holds, directly and indirectly, 77.31% of the total shares of the Bank, as there are preferred shareholders, mostly individuals from the state of Ceará.

The proposed IFC investment involves the full subscription of a cross-border, local currency- denominated bond issued by BIC for an amount up to $40 million-equivalent.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

BIC is headquartered in Sao Paulo and operates 27 branches in Brazil and one branch located in Cayman. While the Bank has national coverage, its operations are largely located in the Southern and Southeastern regions of Brazil, where most middle-market companies are based.

Development impacts include:

- increase banking penetration to the still underserved small and mid-cap segments, which support domestic employment and economic inclusion; and
- promote greater competition in the Brazilian corporate banking segment by supporting a leading mid-sized bank that focuses on underserved market niches, but which has a structural funding disadvantage vis-à-vis the large retail banks.

The project will help BIC mitigate this by increasing and diversifying its local currency funding base and strengthening its liquidity.

Long-term local currency funding, which will help the Bank diversify its funding base and expand its operations in an underserved segment of the market.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations.

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- develop an, or upgrade, if necessary, any existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- identify responsible, qualified persons to manage and implement the SEMS;
- commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Requirements;
- commit to take action to remedy any gaps in SEMS implementation on an ongoing basis;
- submit a periodic report to IFC as per a format to be provided by IFC.